LiveOne, Inc. has entered into a forbearance agreement and amendment with the holders of its 11.75% Senior Secured Convertible Debentures, effective October 29, 2026. The agreement provides a temporary waiver of remedies for a potential event of default, modifies the repayment schedule, and introduces new fees payable to the lenders.
Key Details
- Agreement Terms: Lenders will forbear from exercising remedies for an event of default that occurred prior to October 29, 2026.
- Repayment Schedule: LiveOne must pay lenders $1,000,000 within 30 days and an additional $1,250,000 within 60 days. This is in addition to approximately $5.25 million in funds previously transferred to the lenders' agent.
- Lender Consideration: As a fee for the agreement, LiveOne's subsidiary, PodcastOne, issued 275,000 of its common shares to the lenders. The debentures were also amended to include a new cash "Exit Fee" of at least $1,000,000.
- Modified Terms: The agreement waives the October 2026 redemption right and defers the November 2026 redemption to December 15, 2026. The company's minimum cash balance covenant will be removed upon aggregate payments reaching $7.5 million.