AudioBoom/Triton Merger Goes BOOM
• The Board of British on-demand platform AudioBoom has called off its proposed $185 acquisition of Triton Digital. The deal, which was originally announced in February, would have constituted a reverse takeover of Triton Digital — instead of Triton Digital being absorbed into AudioBoom, the opposite would have occurred, with AudioBoom changing its name to Triton Digital Group.
Pulling out from this Proposed Acquisition comes at a steep price — AudioBoom must now pony up a “Break Fee” to Triton to the tune of £700,000 ($945,259 — payable as $121,533 in cash and the balance of 16.6 million in AudioBoom shares) by June 13. As the company announced, “As a result of the Proposed Acquisition and the Placing not proceeding, the Company requires further financing in the short-term for investment in additional podcasting content and working capital purposes.”
The document continues, “The proceeds from the convertible loan notes will only provide the Company with sufficient working capital for a further period of up to four weeks from today’s date, although the Company would take appropriate cash management measures to seek to extend such period if required. As a result, the Company’s financial position remains uncertain pending the successful completion of the further equity funding. Therefore, the Company has requested that its ordinary shares remain suspended from trading on AIM pending clarification over the Company’s financial position.”
And there’s more — in the Company’s original Feb. 13 announcement regarding the Proposed Acquisition, AudioBoom had intended to make changes to its Board structure; however, those changes will not occur — current CEO Rob Proctor will remain in this role, and the company announced the appointment of a new Chief Financial Officer, Brad Clarke.
