LiveOne (Nasdaq: LVO) Closes $16.775M Debt Financing, Convertible at $2.10 Per Share, Led by Funds Advised by JGB Management, Inc. and Other Investors
Rhea-AI Summary
LiveOne (Nasdaq: LVO) has secured a $27.775 million senior secured convertible notes financing, with an initial draw of $16.775 million on May 19, 2025. The notes are convertible at $2.10 per share, with potential for an additional $11 million subject to financial performance conditions. The company has already utilized proceeds to pay off its East West Bank loan and certain short-term payables.
Key financial improvements include raising subscription pricing from $3 to $5 since January 2025, extending $5M of short-term payables to long-term debt, and strengthening the balance sheet. Strategic initiatives include expanding to 75 B2B partnerships, converting Tesla subscribers, pursuing M&A opportunities, and leveraging AI for monetizing their 60M database. The company currently maintains 1.5M subscribers and ad-supported users.
Positive
- Secured $27.775M in convertible notes financing with $16.775M already drawn
- Increased ARPU from $3 to $5 since January 2025, improving revenue per user
- Paid off $7M East West Bank loan and $4M short-term payables, improving debt structure
- Converted $5M short-term payables to long-term debt, enhancing liquidity
- Large growth potential with 60M database for AI monetization
Negative
- Potential dilution for shareholders due to convertible notes at $2.10 per share
- Additional $11M funding contingent on meeting financial performance conditions
- Increased debt burden through new convertible notes
News Market Reaction – LVO
On the day this news was published, LVO declined 3.68%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Potential Additional Funding of up to
$11M - Raised subscription price by
$1 /month (ARPU increased from$3 t o$5 since Jan. 1, 2025)
*Financial Moves*
- Paid off
$7M East West Bank loan - Extinguished
$4M short-term payables - Extended
$5M of short-term payable to long-term debt
*Planned Initiatives*
- Grow/close up to 75 B2B partnerships
- Convert Additional Tesla subscribers
- Pursue M&A opportunities
- Expand AI and data mining to monetize 60M database
- Grow current 1.5M subscribers and ad-supported users
LOS ANGELES, May 22, 2025 (GLOBE NEWSWIRE) -- LiveOne (Nasdaq: LVO), an award-winning, creator-first, music, entertainment, and technology platform, today announced that it has closed a
“This financing, with our long-term partner JGB Management, Inc., is a major milestone for LiveOne as we optimize our capital structure and focus on growth and profitability,” said Robert Ellin, Chairman and CEO of LiveOne. “By eliminating our previous debt and securing fresh capital, we are now well-positioned to scale our platform, expand our B2B footprint and execute strategic acquisitions.”
The details of the financing transaction will be fully described in LiveOne’s Current Report on Form 8-K to be filed with the U.S. Securities and Exchange Commission.
About LiveOne
Headquartered in Los Angeles, CA, LiveOne (Nasdaq: LVO) is an award-winning, creator-first, music, entertainment, and technology platform focused on delivering premium experiences and content worldwide through memberships and live and virtual events. LiveOne's subsidiaries include Slacker, PodcastOne (Nasdaq: PODC), PPVOne, CPS, LiveXLive, DayOne Music Publishing, Drumify and Splitmind. LiveOne is available on iOS, Android, Roku, Apple TV, Spotify, Samsung, Amazon Fire, Android TV, and through STIRR's OTT applications. For more information, visit liveone.com and follow us on Facebook, Instagram, TikTok, YouTube and X at @liveone. For more investor information, please visit ir.liveone.com.
Forward-Looking Statements
All statements other than statements of historical facts contained in this press release are “forward-looking statements,” which may often, but not always, be identified by the use of such words as “may,” “might,” “will,” “will likely result,” “would,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target” or the negative of such terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including: LiveOne’s reliance on its largest OEM customer for a substantial percentage of its revenue; LiveOne’s ability to consummate any proposed financing, acquisition, spin-out, special dividend, merger, distribution or transaction, the timing of the consummation of any such proposed event, including the risks that a condition to the consummation of any such event would not be satisfied within the expected timeframe or at all, or that the consummation of any proposed financing, acquisition, spin-out, merger, special dividend, distribution or transaction will not occur or whether any such event will enhance shareholder value; LiveOne’s ability to continue as a going concern; LiveOne’s ability to attract, maintain and increase the number of its users and paid members; LiveOne identifying, acquiring, securing and developing content; LiveOne’s intent to repurchase shares of its and/or PodcastOne’s common stock from time to time under LiveOne’s announced stock repurchase program and the timing, price, and quantity of repurchases, if any, under the program; LiveOne’s ability to maintain compliance with certain financial and other debt covenants; LiveOne successfully implementing its growth strategy, including relating to its technology platforms and applications; management’s relationships with industry stakeholders; LiveOne’s ability to repay its indebtedness when due; uncertain and unfavorable outcomes in legal proceedings and/or LiveOne’s ability to pay any amounts due in connection with any such legal proceedings; changes in economic conditions; competition; risks and uncertainties applicable to the businesses of LiveOne’s subsidiaries; risks and uncertainties applicable to LiveOne’s ability to satisfy the conditions for closing on the additional
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FAQ
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