LiveOne, the renowned creator-first music, entertainment, and technology platform, has made a significant announcement today. The company's board of directors has authorized an increase to its stock repurchase program, allowing LiveOne to repurchase approximately $7.5 million worth of its common stock. Additionally, LiveOne has entered into a non-binding Letter of Intent (LOI) for a new credit line of $12.5 million. These strategic moves position LiveOne to pursue its next major acquisition, strengthen its financial position, and drive internal growth.

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Stock Repurchase Program Expansion

LiveOne's board of directors has granted approval for an increase in the stock repurchase program, enabling the company to repurchase a total of around $7.5 million worth of LiveOne's shares of common stock, inclusive of the shares already repurchased. Since April 2022, LiveOne has repurchased 2.9 million shares of its common stock, underscoring the company's confidence in the undervalued nature of its shares.

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CEO's Confidence in Stock Buyback

Robert Ellin, LiveOne's CEO and Chairman, expressed confidence in the undervaluation of LiveOne's shares and affirmed the company's commitment to aggressively repurchasing more shares. This buyback initiative is expected to contribute to the optimization of LiveOne's capital allocation strategy, with a focus on fueling the company's growth and expanding its business.

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Execution and Parameters of the Repurchase Program

The timing, price, and actual number of shares repurchased under the program will be determined by LiveOne's management, considering various factors such as stock price, general market conditions, and alternative investment opportunities. LiveOne intends to execute the repurchases through compliant methods, including open market purchases, adhering to the rules of the U.S. Securities and Exchange Commission and other applicable legal requirements. It's important to note that LiveOne is not obligated to acquire any specific amount of shares, and the company reserves the right to suspend or discontinue the repurchase program at any time.

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Pursuit of New Credit Line

LiveOne has taken a significant step towards securing a new credit line by entering into a non-binding Letter of Intent (LOI). The proposed credit line amounts to $12.5 million and is intended to replace LiveOne's current credit line. The new credit line, along with the expanded stock buyback program, positions LiveOne to actively pursue its next major acquisition, strengthen its balance sheet, and provide fuel for internal growth. It's important to note that the consummation of the proposed credit line is subject to the execution of definitive documentation and customary closing conditions.