Music licensing firm Songtradr has become the single largest shareholder in music metadata company Jaxsta.
This is not a surprise. It’s the result of a previously-announced conversion of Songtradr’s ‘Tranche #1’ convertible note into ordinary shares in Jaxsta.
It now owns just over 14% of the Australian company’s shares. However, there is scope for this to grow, with a ‘Tranche #2’ convertible note that can be converted up until 29 June 2025.
The news follows Jaxsta’s recent acquisition of industry social-network Vampr, and a change of CEO when the former company’s boss Beth Appleton stepped down, to be replaced by Vampr CEO Josh Simons.
“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,” said Songtradr CEO Paul Wiltshire. “This conversion is a reflection of Songtradr’s ongoing confidence in Jaxsta’s future.”
Jaxsta’s most recent set of half-year financial results showed that its revenues had grown sharply from $31k in the second half of 2021 to $209.6k in the second half of 2022. However, its net losses far outstripped those revenues: $3.2m and $4.5m respectively.
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