A.R.I. Sues Drake’s OVO Alleging $4.6 Million Unpaid After Default and Forbearance Deal

How the OVO–A.R.I. financing was structured According to the Business Wire release and the filed complaint, OVO turned to A.R.I. in 2025 for external growth capital as part of a broader financing strategy. The relationship included: A USD 10 million senior secured credit facility in May 2025 from A.R.I.

Senior Secured Growth Credit Fund, LP, collateralised by OVO intellectual property such as its trademarks and owl logo. Five convertible promissory notes issued between July 14 and August 5, 2025, with an aggregate principal of about USD 5.23 million.

The convertible notes were five year instruments with conversion rights, information and reporting covenants, prepayment restrictions, default remedies and a contractual “Make Whole” fee designed to guarantee A.R.I. a minimum return if the notes were repaid or terminated early.

During the financing process, OVO shared financials indicating roughly USD 72 million in 2024 revenue and nearly USD 400 million in cumulative revenue from 2019–2024, but also EBITDA losses of about USD 8 million in 2024 and USD 12 million cumulatively from 2022–2024…