Los Angeles-based B2B music licensing company Songtradr has become the largest shareholder in Australia-headquartered music credits database company Jaxsta on Friday (September 15).
Songtradr raised its stake in Jaxsta after converting its Tranche #1 convertible bonds into ordinary shares, according to a filing by Jaxsta on the Australian Stock Exchange.
Songtradr converted a principal and interest balance of AUD $1.77 million (approx. USD $1.14 million) bonds into 84.5 million ordinary shares in Jaxsta at a conversion price of AUD $0.021 (USD $1.014) per share, down from Jaxsta’s closing price of AUD $0.050 prior to the filing date.
The conversion resulted in Songtradr holding a 14.04% stake in the Australia-listed company.
The US company still has Tranche #2 bonds in Jaxsta for a principal balance of AUD $3 million (USD $1.9m) that is not convertible until June 29, 2025, according to the filing.
Commenting on the transaction, Songtradr CEO Paul Wiltshire said: “Jaxsta has undertaken a significant transformation over the last 12 months with the refinement of the Jaxsta product offering, the launch of Vinyl, the acquisition of Vampr, and the disciplined management of reducing costs.”
“This conversion is a reflection of Songtradr’s ongoing confidence in Jaxsta’s future. Songtradr intends to be a long term shareholder and we look forward to continuing to build on both our working relationship and our shareholding in the future.”
Paul Wiltshire, Songtradr
“This conversion is a reflection of Songtradr’s ongoing confidence in Jaxsta’s future. Songtradr intends to be a long term shareholder and we look forward to continuing to build on both our working relationship and our shareholding in the future.”
Jaxsta CEO Josh Simons added: “The ongoing relationship with Songtradr has been instrumental in the many changes enacted in the last 15 months and is one that is highly beneficial to the Company and shareholders going forward. This conversion solidifies the ongoing work and the trust on the future of Jaxsta.”
The development follows Jaxsta’s latest round of appointments, naming Alli Galloway as Chief Marketing Officer and Jessy Trengove as Chief Product Officer. Their promotions completed Jaxsta’s updated C-Suite.
“The ongoing relationship with Songtradr has been instrumental in the many changes enacted in the last 15 months and is one that is highly beneficial to the Company and shareholders going forward. This conversion solidifies the ongoing work and the trust on the future of Jaxsta.”
Josh SImons, Jaxsta
Josh Simons, who joined Jaxsta as part of its acquisition of Vampr, was named Jaxsta’s CEO in July, succeeding Beth Appleton, who stepped down from the role after over a year.
Back in June, Jaxsta raised AUD $3 million in a private share placement that made Australian tech billionaire Richard White its major shareholder with a 9.64% stake.
Songtradr’s bond conversion led to it becoming the largest shareholder in Jaxsta.
For Songtradr, the development marks nearly six months after it completed its acquisition of 7digital, a UK-based publicly listed music technology company, for GBP £19.4 million (USD $23.1m).
Songtradr has been active in expanding its portfolio through strategic acquisitions. In June 2022, it acquired AI metadata and music search company, Musicube.
Prior to that deal, it acquired creative music agency Massive Music in June 2021, Sydney-based music and sound design company Song Zu in March 2021, and London-headquartered creative music licensing agency Big Sync Music in February 2019.
Music Business Worldwide