AudioBoom Deal To Buy Triton Digital Called Off


No Deal

Podcast platform AUDIOBOOM has called off its deal to buy TRITON DIGITAL for $185 million, citing difficulty in placing new shares in the company to finance the deal. 

The “reverse takeover” was announced in FEBRUARY but will not proceed, and AUDIOBOOM has told investors it now has to pay TRITON a £700,000 ($946,368) break fee (£90,000 in cash and 16.6 million in AUDIOBOOM shares) by JUNE 13th.  In addition the company is warning that proceeds from an APRIL 17th issue of convertible loan notes has raised only enough cash to provide working capital for the next four weeks and that absent further funding, its financial position “remains uncertain.”  AUDIOBOOM share trading has been suspended “pending clarification over the Company’s financial position.”

AUDIOBOOM has also appointed BRAVE BISON GROUP PLC Group Finance Director BRAD CLARKE as CFO.

CEO ROB PROCTOR said, “Whilst the Board is naturally disappointed that we were unable to raise the necessary funds to complete the Proposed Acquisition, I am pleased to report that our efforts to consolidate our customer base and attract more commercially viable podcasts are progressing well, with a growing proportion of our overall inventory being focussed on the lucrative in-read advertising space. The further reduction in the number of smaller, unsustainable podcasts on our platform will allow us to further reduce our monthly operating costs.  Overall AUDIOBOOM continues to run a tighter, more compact operation, which will ultimately lead to a stronger more vibrant business.  I look forward to updating shareholders in the near future with regards to the Company’s proposed further equity fundraising.”

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