Today (11 August) could be the day that struggling music streaming service SoundCloud officially runs out of money unless it signs a new investment deal.

SoundCloud had previously denied claims that it was heading toward shutting up shop due to a lack of money, despite reports stating otherwise and it laying off 40 per cent of its staff.

Now, according to the US news and information website Axios’ Dan Primack, a circular has been sent to existing SoundCloud shareholders, which requires them to accept or reject a reorganisation proposal by the end of the day. If accepted, a new investment of $169.5m at a $150m pre-money enterprise valuation will also close. If rejected, CEO Alex Ljung has said the company would not be able “to continue as a going concern”.

The investment would come from Raine Group and Temasek, with the latter requiring anti-trust clearance. While returning backers would include Union Square Ventures, Doughty Hanson and Atlantic Technology, with all investors receiving Series F stock.

“Financing of this size will enable to Company to pay off its remaining debt, while ensuring a strong, independent future,” say documents in relation to the deal. “In the event that the transaction does not close and in the vent SoundCloud does not otherwise obtain additional funding, based on current cashflow forecasts, SoundCloud faces liquidity concerns in the near term.”