Vinyl Group has secured a $1.5 million revolving line of credit agreement with Songtradr, one of the media business’s major shareholders.
Announced Monday, June 30th, Vinyl Group enters into a binding term sheet for a 24-month agreement with Songtradr on arms-length commercial terms.
The credit line, reads a statement, should provide flexible working capital to support the acceleration of sales on Vinyl.com, Vinyl Group’s B2C online vinyl marketplace, during the CY25 holiday season. The applied interest rate is RBA plus 5% per annum.
Also, Vinyl Group and Songtradr have reached agreement in principle on the conversion of certain historical liabilities currently owed to Songtradr.
Subject to shareholder approval, the arrangement would include the acquisition of the Vinyl.com domain. These two agreements “further strengthen Vinyl Group’s strategic partnership with Songtradr,” which remains a major shareholder of the company, reads a statement to the ASX.
“Our continued support for Vinyl Group reflects our shared belief in creating a more transparent and connected music ecosystem,” comments Paul Wiltshire, CEO of Songtradr in the ASX statement.
Adds Josh Simons, CEO of Vinyl Group: “Our partnership with Songtradr continues to create real opportunities for the business. The new credit line gives us flexibility to accelerate growth in Vinyl.com and support long-term shareholder value.”
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Vinyl Group is the only music-focused company listed on the ASX, with a portfolio that includes Vinyl.com, the e-commerce platform with over 50,000 titles; Vampr, the social-professional network and talent marketplace with 1.6 million creators across 190-plus countries; and Jaxsta, the world’s largest database of official music credits with over 380 million verified records.
Based in Sydney, the business made global headlines with its purchase of The Brag Media, now Vinyl Media, in December 2023, a pact that welcomed a suite of titles into the Vinyl fold, including Rolling Stone AU/NZ, Variety AU/NZ, Tone Deaf, and The Music Network.
Subsequent acquisitions have included Web3 pioneer Serenade, events and brand activations specialist Funkified Entertainment, and Mediaweek.
“I’m grateful for the continued backing of Songtradr and Paul Wiltshire and excited for what comes next,” adds Vinyl Group’s Simons in a social post. “We’re building for the future, and we’re just getting started.”
Vinyl Group has been sharing monthly trading updates with investors and shareholders by way of social posts.
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Songtradr launched in 2015, initially with a platform that enabled independent and DIY artists to license their music. In the years since, the business strategically acquired more than 10 global business and today offers solutions for all technology and business needs in the music community.
Songtradr launched in 2015, initially with a platform that enabled independent and DIY artists to license their music. In the years since, the business strategically acquired more than 10 global business and today offers solutions for all technology and business needs in the music community. Those acquisitions have included the 2023 purchase of Bandcamp from Epic Games.