Audioboom is in trouble. Back in February it was announced that Audioboom would be purchasing Triton Digital Canada, the parent company of Triton Digital for $185 million in a reverse takeover. Due to insufficient funds that deal is off and Audioboom is in jeopardy of shutting down.
The proposed acquisition was to be funded, inter alia, by a placing of new ordinary shares in the company. However, Audioboom was unable to complete the placing. As a result of the deal falling apart Audioboom is now looking for new funding so it can invest in additional podcasting content and for working capital. That all means that Audioboom’s financial position remains uncertain until and unless it can secure the funding. If additional funding is not found the company may need shut down
In addition to the possibility of going under, Audioboom now owes Triton a “Break Fee” of just under $1 million which must be paid by June 13. The fee will be paid in $121,000 in cash and 16.6 million shares of Audioboom.