LiveOne (NASDAQ: LVO) Joined Russell 2000 Index (June 28)
LiveOne (NASDAQ: LVO), a music, entertainment, and technology platform, has joined the Russell 2000 Index as of June 28. The company announced significant changes in its share structure, including an increase in institutional holdings by over 10.5 million shares and the retirement of 4.2 million open market shares, reducing the total outstanding shares to 94.7 million. Additionally, LiveOne registered 1.3 million warrants at $2.10, which represents a 50% premium, and expects to receive $2.73 million from its largest existing investor. The company also plans to buy back $5 million worth of LVO shares.
- Joined the Russell 2000 Index.
- Institutional holdings increased by over 10.5 million shares.
- Retired 4.2 million open market shares.
- Total outstanding shares reduced to 94.7 million.
- Registered 1.3 million warrants at $2.10, a 50% premium.
- Expecting $2.73 million from the largest existing investor.
- Plans to buy back $5 million worth of LVO shares.
- None.
Insights
Joining the Russell 2000 Index is meaningful for LiveOne as it often attracts new institutional investors and increased liquidity. The index is a widely-used benchmark for U.S. small-cap stocks and inclusion can result in higher demand for the company's shares. Furthermore, the institutional holdings increase by 10.5M shares suggests growing institutional confidence in LiveOne's prospects. This is generally a positive signal for retail investors, indicating potential stability and growth in stock value. However, investors should also monitor the market's reaction to the retirement of 4.2M shares, which reduces the total shares outstanding to 94.7M. This reduction can enhance shareholder value through increased earnings per share (EPS), assuming the company's profits remain constant or grow.
The announced plan to buy back $5M worth of shares shows management's confidence in the company's future. Share buybacks typically support the stock price by reducing supply and signaling that the stock is undervalued. However, investors should be wary of how this impacts the company's cash reserves and ability to reinvest in growth initiatives.
The registration of 1.3M warrants at $2.10 with a 50% premium indicates strong backing from LiveOne's largest existing investor. Warrants enable investors to purchase stock at a specific price before the expiration date, which in this case reflects confidence in the company's future valuation exceeding this price point. The expected influx of
It's essential to consider the potential impact of dilution when these warrants are exercised. Although it might be seen as a short-term risk, the long-term benefit could outweigh this if the company effectively leverages this capital for expansion and innovation. Retail investors should evaluate the trade-off between short-term dilution and long-term growth potential.
Institutional holdings increase by 10.5M+ shares
Retires 4.2M open market shares, reducing total outstanding shares to 94.7M
Registered 1.3M warrants at
Company Plans to Aggressively Buy Back
LOS ANGELES, July 08, 2024 (GLOBE NEWSWIRE) -- LiveOne (NASDAQ: LVO), a creator-first music, entertainment, and technology platform, announces recent developments, including joining the Russell 2000 Index and retiring 4.2M open market shares.
About LiveOne, Inc.
LiveOne, Inc. is an award-winning, creator first, music, entertainment, and technology platform delivering premium experiences and content worldwide. With subsidiaries like Slacker Radio and PodcastOne, LiveOne has garnered accolades for its innovative approach, including the Best Live Moment award by Digiday for the "Social Gloves" PPV Event.
Forward-Looking Statements
All statements other than statements of historical facts contained in this press release are “forward-looking statements,” which may often, but not always, be identified by the use of such words as “may,” “might,” “will,” “will likely result,” “would,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target” or the negative of such terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including: the Company’s reliance on one key customer for a substantial percentage of its revenue; the Company’s ability to consummate any proposed financing, acquisition, spin-out, special dividend, merger, distribution or transaction, the timing of the consummation of any such proposed event, including the risks that a condition to the consummation of any such event would not be satisfied within the expected timeframe or at all, or that the consummation of any proposed financing, acquisition, spin-out, merger, special dividend, distribution or transaction will not occur or whether any such event will enhance shareholder value; the Company’s ability to continue as a going concern; the Company’s ability to attract, maintain and increase the number of its users and paid members; the Company identifying, acquiring, securing and developing content; the Company’s intent to repurchase shares of its common stock from time to time under its announced stock repurchase program and the timing, price, and quantity of repurchases, if any, under the program; the Company’s ability to maintain compliance with certain financial and other covenants; the Company successfully implementing its growth strategy, including relating to its technology platforms and applications; management’s relationships with industry stakeholders; the effects of the global Covid-19 pandemic; uncertain and unfavorable outcomes in legal proceedings; changes in economic conditions; competition; risks and uncertainties applicable to the businesses of the Company’s subsidiaries; and other risks, uncertainties and factors including, but not limited to, those described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023, filed with the U.S. Securities and Exchange Commission (the “SEC”) on June 29, 2023, Quarterly Report on Form 10-Q for the quarter year ended June 30, 2023, filed with the SEC on August 15, 2023, and in the Company’s other filings and submissions with the SEC. These forward-looking statements speak only as of the date hereof, and the Company disclaims any obligation to update these statements, except as may be required by law. The Company intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.
For media inquiries, please contact:
LiveOne IR Contact :
Liviakis Financial Communications, Inc.
(415) 389-4670
john@liviakis.com
LiveOne Press Contact :
LiveOne
press@liveone.com
Follow LiveOne on social media: Facebook, Instagram, TikTok, YouTube, and Twitter at @liveone.
FAQ
What recent index did LiveOne (LVO) join?
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