Songtradr CEO Paul Wiltshire. Photo Credit: Songtradr
B2B music rights and licensing marketplace Songtradr now holds 14.04% of Jaxsta’s shares, making it the largest shareholder of the Sydney-based credits database platform. The announcement emerged after Songtradr completed the conversion of its Tranche #1 convertible note (announced in 2020) into Jaxsta (ASX: JXT) ordinary shares.
On Friday, September 15th, a statement was issued to the Australian Stock Exchange revealing Songrtradr’s rescripted position on Jaxsta’s shareholder table. The event occurred just days after Jaxsta launched a round of leadership promotions for the completion of its new look C-suite.
Via the statement, Songtradr CEO Paul Wiltshire relayed that the conversion is a ‘reflection of Songtradr’s ongoing confidence in Jaxsta’s future.’ Wiltshire also communicated Songtradr’s intention to remain a long-term shareholder in Jaxsta, adding that he looks forward to continuing to build their ‘working relationship and shareholding in the future.’
Jaxsta’s CEO, Josh Simmons, also added to the official statement, explaining how the ongoing relationship with Songtradr has been an instrumental force behind the many modifications Jaxsta has implemented during the last 15 months.
Simmons emphasized that Jaxsta and Songtradr relationship ‘is highly beneficial to the company and shareholders going forward,’ adding, “This conversion solidifies the ongoing work and the trust in the future of Jaxsta.”
Jaxsta’s resources allow artists and music professionals to showcase their work and song credits like a digital resume. With the Songtradr partnership, Jaxsta’s Pro database can access Songtradr’s neighboring rights collection service to identify, manage, and collect neighboring rights royalties effectively. The neighboring rights market is a lucrative business valued at AUS$3.58 billion ($2.6 billion).
Songtradr’s more prominent position on the shareholder list was inevitable. It was spurred into action in April 2020 after the platform initiated its strategic investment with Jaxsta.
Songtradr had announced an AUS$1.42 million convertible note investment, added to another AUS$3 million in 2022.
The Songtradr-Jaxsta team-up provided Jaxsta with the crucial capital it needed to commercialize its professional platform. The company is currently the only music business listed on the Australian Stock Exchange, and news of the partnership caused Jaxsta shares to spike a whopping 285% on the ASX.
In the latest statement, Wiltshire praised the ‘significant transformation’ Jaxsta has undertaken over the last 12 months. He highlighted the ‘refinement of the Jaxsta product offering, the launch of Vinyl, the acquisition of Vampr, and the disciplined management of reducing costs.’
Wiltshire is referencing Jaxsta’s enormous business moves earlier this year— the acquisition of Vampr, a social media network for musicians (which was originally founded by guitarist Baz Palmer and current Jaxsta CEO Josh Simmons), and Vinyl.com, an online record store with extensive information on all artists and contributors.
The acquisitions led to a significant economic and structural shakeup for Jaxsta. Shareholders received 89 million JXT shares, plus options and $250,000 in cash, propelling a leadership revamp that ultimately led Simmons into the CEO seat in June.
Jaxsta also secured a $3 million capital raise plugged by WiseTech Global (ASX: WTC). WiseTech founder and CEO Richard White now owns 9.64% of the Jaxsta stock, a close second after Songtradr’s 14.04%.
