Vinyl Group Issues 19.76M Shares at $0.099 to Settle $2M Debt
Vinyl Group has finalized an equity conversion agreement with Songtradr, extinguishing nearly $2 million in liabilities and gaining full control of the Vinyl.com domain. This move strengthens the company’s balance sheet and sets the stage for its FY26 growth ambitions.
- Binding agreement converts Neighbouring Rights Advance liability into equity
- Approximately A$1.98 million in shares issued to Songtradr at $0.099 per share
- No cash payment involved; liabilities fully settled by share issuance
- Full ownership of strategic Vinyl.com domain secured
- Transaction subject to shareholder approval and prior agreement terminations
Equity Conversion Finalized
Vinyl Group Ltd (ASX – VNL), Australia's sole ASX-listed music technology and media company, has taken a significant step to simplify its capital structure by executing a binding Share Subscription Agreement with Songtradr, Inc. This agreement formalizes the conversion of the remaining Neighbouring Rights Advance liability into equity, a transaction first announced in June 2025.
The deal involves issuing approximately 19.76 million ordinary shares to Songtradr at a volume weighted average price of $0.099 per share, reflecting a total subscription price of nearly A$2 million. Importantly, this transaction requires no cash outlay from Vinyl Group, as the share issuance fully satisfies its outstanding obligations related to the Buyout Option and the Neighbouring Rights Advance.
Strategic Asset Consolidation
Beyond financial restructuring, the agreement secures full ownership of the Vinyl.com domain name, a critical e-commerce asset for the company. Vinyl.com serves as a flagship platform within Vinyl Group’s diverse portfolio, which spans music credits databases, social-professional networks for creators, and Web3 collectibles. Consolidating ownership of this domain strengthens the company’s digital footprint and brand identity in the competitive music technology landscape.
Positioning for Growth and Profitability
Vinyl Group’s CEO Josh Simons emphasized that this transaction is a decisive move to eliminate legacy liabilities and enhance shareholder value. By converting debt into equity, the company improves its balance sheet flexibility, positioning itself to execute its FY26 profitability strategy with greater confidence. Songtradr’s CEO Paul Wiltshire echoed this optimism, highlighting their confidence in Vinyl Group’s management and growth prospects.
The transaction remains conditional on shareholder approval at the upcoming FY25 Annual General Meeting and the termination of prior agreements, with completion expected shortly after these conditions are met. Investors will be watching closely to see how this restructuring impacts share dilution and whether it catalyzes the company’s next phase of expansion.
Bottom Line?
Vinyl Group’s equity conversion clears the path for streamlined growth, but shareholder approval will be the next critical hurdle.
Questions in the middle?
- How will the equity issuance impact Vinyl Group’s share price and dilution?
- What are the implications for Vinyl Group’s FY26 profitability targets post-conversion?
- Will full ownership of Vinyl.com translate into measurable revenue growth?
