SoundCloud Warns It May Have to Raise More Money This Year
- ‘Material Uncertainy’ ahead if subscription service stalls
- Music streaming company says it’s on a ‘positive path’
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Online music company SoundCloud Ltd. warned that if a music subscription service it introduced last year doesn’t gain traction with customers it risks running out of money.
In a regulatory filing published in the U.K. this week, SoundCloud said that while it believes it has enough funds to make it through 2017, if the subscription service doesn’t take off it may raise "material uncertainty" about the company’s "ability to continue as a going concern," the filing said. SoundCloud said it may have to raise additional funds to meet its financial obligations.