The IPO had intended to offer investors a piece of Eminem's royalties.
Royalty Flows plans to go public with its start-up business model dependent on royalties from Eminem music had the rug pulled out from under it, according to a blog post by Matthew Smith, the CEO of Royalty Exchange, the parent company of Royalty Flow.
As it is, Royalty Flow completed the acquisition of an income stream of 25% of Eminem royalties paid to FBT Productions, the Bass Brothers company that often works with and produces Eminem’s music, from the artist’s studio albums released between 1999 and 2013 via Aftermath Entertainment/Interscope Records. As part of that deal, Royalty Flow was to pay $18.75 million for that income stream; and it apparently used internal funding to make that purchase, instead of funds raised from an initial public offering as planned. According to the company, that purchase will be completed with installment payments.