Algorhythm Holdings Successfully Closes $9.5 Million Offering

Algorhythm Holdings, Inc. Announces Successful Public Offering

Algorhythm Holdings, Inc. (“Algorhythm” or the “Company”) (NASDAQ: RIME), a forward-thinking technology and consumer electronics holding company, declared the successful closing of a public offering generating gross proceeds of around $9.5 million. This milestone reflects the growing trust and interest from investors in the Company’s innovative approach and market potential.

Details of the Public Offering

The offering included the sale of 55,882,352 shares of the Company’s common stock, which could also be exchanged for pre-funded warrants. Each share sold came with a Series A Warrant allowing for the purchase of one additional share at an exercise price of $0.17 as well as a Series B Warrant at an exercise price of $0.34. These warrants are designed to enhance shareholder value while providing opportunities for investors to participate further in the Company's growth.

Warrant Expiration and Conditions

Investors should note that the Series A Warrants have a five-year expiration period from their initial exercise date, whereas the Series B Warrants are set to expire two and a half years later. Moreover, the exercisability of these Warrants is contingent upon stockholder approval for the issuance of the underlying shares. This strategic move is essential for aligning interests and ensuring the Company's long-term objectives are met.

Utilization of Proceeds from the Offering

The proceeds from this public offering are earmarked for working capital, general corporate purposes, and to reduce outstanding obligations from senior secured notes. This approach not only alleviates financial burdens but also strategically positions Algorhythm for future expansions and product developments.

Role of Univest Securities

Univest Securities, LLC has served as the sole placement agent throughout this offering. Their involvement has been instrumental in facilitating a smooth transaction and ensuring that the needs of both the Company and its investors are effectively addressed.

About Algorhythm Holdings, Inc.

Algorhythm Holdings, Inc. boasts a diverse portfolio with significant investments in two main areas. Primarily, the Company holds a stake in SemiCab Holdings, an influential player in the AI-optimized global logistics landscape. Through its cutting-edge, cloud-based Collaborative Transportation Platform, SemiCab aims to revolutionize supply chain dynamics using AI and machine learning.

Innovations in Transportation

SemiCab has been impacting the logistics industry by addressing common supply chain inefficiencies. Their advanced predictive optimization models contribute to increasing transportation capacity, enhancing utilization of assets, and decreasing logistics costs. Furthermore, their focus on sustainability aims to reduce the carbon footprint within the industry effectively. Reports suggest that through optimized truck utilization, SemiCab can reduce CO2 emissions generated from road freight by a significant margin.

Consumer Market Presence

In addition to logistics, Algorhythm has established a strong foothold in the consumer market through its investment in The Singing Machine Company. Celebrated as the leader in consumer karaoke products, Singing Machine offers a wide array of innovative entertainment products that are sold globally. Their product range is not just extensive; it also integrates modern technology to deliver an immersive experience.

Community Initiatives and Product Offerings

Singing Machine's commitment to social impact through its CARE-eoke by Singing Machine initiative highlights their dedication to promoting the joy of music for audiences of all ages. This philanthropic initiative aims to enhance the singing experience for children and adults alike, fostering a sense of community and connection through music.

Contact Information

For investors interested in learning more about Algorhythm Holdings, they can reach out via email at investors@algoholdings.com or visit their website at www.algoholdings.com.

Frequently Asked Questions

What was the amount raised in the recent public offering?

Algorhythm Holdings raised approximately $9.5 million from their recent public offering.

Who was the placement agent for this offering?

Univest Securities, LLC acted as the sole placement agent for the offering.

What are the expected uses of the proceeds from the offering?

The Company plans to use the proceeds for working capital, general corporate purposes, and repayment of certain senior secured notes.

What are the expiration dates for the Series A and B Warrants?

Series A Warrants expire five years from their exercise date, while Series B Warrants expire 2.5 years from their exercise date.

What are Algorhythm's primary business focuses?

The Company focuses on investments in AI-driven logistics through SemiCab and consumer entertainment products through The Singing Machine Company.

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