Credits Database Jaxsta (ASX:JXT) has raised AU$3 million (currently US$2.04 million) through a share placement and has presented detailed plans to further expand its offering.
Jaxsta, headquartered in Darlinghurst, New South Wales, today announced the multi-million dollar raising and associated expansion goals in a formal press release emailed to Digital Music News. According to the company, which announced its acquisition of music industry social network Vampr in early 2023, the offering saw 75 million new shares issued at a price of four Australian cents each.
Aside from representing a 24 percent discount to the per-share value of Jaxsta stock on June 13, the new shares were made available at a discount of approximately 48 percent to the value of JXT at the close today. Meanwhile, Jaxsta CEO Richard White now owns 9.64 percent of his company’s stock, according to the Credits database. Trading in shares from the Red Leaf Securities-led offering is expected to begin on the 27th.
Other participants in the brokerage include existing stakeholder Paul Wiltshire (Songtradr’s founder and CEO) and longtime supporter and non-executive director Ken Gaunt. In addition, Wiltshire told us that its music licensing and distribution platform itself had invested a total of AU$4.42 million in Jaxsta – AU$1.42 million in 2020, with the remaining AU$3 million in 2022.
Linda Jenkinson, CEO of Jaxsta (and Chair of GuildSuper), addressed the raise — and White’s stake in particular — in a statement: “We are pleased to welcome Richard as a cornerstone investor in Jaxsta’s investment.” and support confirms the significant progress we have made and our positive prospects for the future.”
Regarding the eight-year-old company’s capital plans, senior executives identified goals such as “the ongoing launch and expansion of Vinyl.com, the integration of Vampr and Jaxsta, and investments in AI research and development with a focus on optimizing the customer experience.”
DistroKid partner Jaxsta officially launched Vinyl.com last month, and the self-described database and online “disk store with a difference” resulted in part from a licensing agreement (covering domain name, vinyl trademarks and more) with the aforementioned songtradr . According to the public disclosuresaid license agreement will initially last two years, with an option for a further one-year extension.
As part of the agreement, 7digital owner Songtradr will receive the higher of $10,000 or 7.5 percent of net sales for Vinyl.com’s first year, $30,000 or 7.5 percent of net sales for year two and 60,000 US Dollars or the same percentage the optional third year as per the same disclosure.
Alternatively, Jaxsta could acquire the licensed Vinyl.com assets in full for $1 million in the first year or, beyond that window, $1 million and five percent of total net sales, according to the filing.