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The podcast platform Audioboom is getting a $4 million loan from Michael Tobin, the company's chairman, and Candy Ventures, the largest shareholder which currently holds 26.1% of the company. The pair made two similar moves – one last month and the other last June. Those cash infusions were used to create a fund that provides minimum advertising revenue guarantees to new content partners. The latest financial move will help ensure Audioboom stays in the black.

While the company will have as much as $4 million at its disposal, it may not need that much. “The board is increasingly confident in management’s ability to forecast performance and growth prospects,” its announcement said, calling the loan a move designed to “provide sufficient headroom to fund the company and its growth strategy through to sustainable positive cash generation on a monthly basis.” Audioboom tells investors that based on the current cash flow forecast it will draw down a minimum of $200,000. 

“I am delighted that our chairman and largest shareholder have continued to demonstrate their support and belief in the company’s prospects and strategy,” CEO Stuart Last said in a statement. “This non-dilutive financing should fund Audioboom through to sustainable positive cash generation and allows the management team to remain focused on delivering further growth in what is an increasingly exciting market. We have made a strong start to the year with bookings for 2020 ahead of management expectations.” 

Audioboom will have two years to repay whatever it borrows, plus 8% interest. That timeline would be pulled forward if Audioboom raises outside capital or is sold. That’s now a possibility. The company this week announced it has retained New York-based Raine Advisors to “provide advice and assistance” as it also looks at strategic partnerships and potential merger options. Audioboom told investors that it has not yet received any formal offers, but it now considers itself to be in a formal “offer period.”

Revenue nearly doubled last year at Audioboom, which exceeded expectations for the first time since the company launched six years ago. Audioboom says revenue soared 91% to $22.2 million last year. That was up from $11.7 million in 2018.