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Facing ongoing challenges of operating a live event business during a pandemic, PodcastOne’s parent LiveOne has struck a deal with its lenders to convert about $2.4 million of outstanding debt into shares of the company at a price of $2.10 per share. That is a significant premium over the current price of LiveOne’s common stock price, which is trading at roughly $1.25 per share. But the move will give the company more financial wiggle room as it deals with new waves of the pandemic.

LiveOne also announced plans to “consolidate and restructure” its React Presents live business. The division that focuses on live events in the Chicago area was acquired by LiveXLive in early 2020 for $3.4 million.

Last month LiveOne announced it plans to implement deeper cost cutting and expense reduction initiatives that will target both its operations and corporate overhead. The move, which includes layoffs, will more than double the amount it hopes to save from the previously announced $5.6 million to more than $14 million a year.

Some of those cuts may come from its live events business, which is taking a fresh hit from the Omicron virus. LiveOne says because of the worsening pandemic, it has canceled its Spring Awakening live music festival planned for January in Cancun. The company has also pushed back its global pop-culture competition franchise Self-Made Knockout to later in 2022. The decision came after it said its October live EDM music event in Chicago was “seriously impacted” by the Delta variant as well as adverse weather, which caused the audience to be evacuated due to lightning. Rather than making money, the event wound up losing $3 million. LiveOne says it has filed an insurance claim in hopes of recovering the costs.

Given the cancellation and rescheduling of planned live events as well as the challenges incurred at the Chicago event, LiveOne cut its revenue guidance for the fiscal year that ends June 30, 2022 from $115 to $125 million in revenue to $110 to $112 million.

Meantime LiveOne continues to move forward with its plan to spin off its pay per view business PPVOne into a public company and its plan to distribute a minority portion of the new company's equity to LiveOne's stockholders. That is still anticipated to take place by March 31.

LiveOne says it is still working with J.P. Morgan to explore strategic alternatives – including a possible sale of assets.