Algorhythm Holdings Boosts SemiCab with New Finance Facility
Algorhythm Holdings Expands Financial Support for SemiCab
Multi-Million Dollar, Non-Dilutive Facility Supports
SemiCab’s Three Largest Global Customers
Fort Lauderdale, FL —Algorhythm Holdings, Inc. (“Algorhythm”) (NASDAQ: RIME) is proud to announce that its subsidiary, SMCB Solutions Private Limited, known as SemiCab India, has established a significant supply chain finance receivables facility with Bank of America.
This financial facility grants SemiCab India crucial access to competitive, non-dilutive working capital. It enables the rapid payment of all eligible accounts receivable from its three largest global clients, including some of the largest multinational companies in the fast-moving consumer goods (FMCG) and automotive sectors in India. The arrangement provides accelerated payments on qualified accounts with rates set at a mere 1% above the prevailing Indian one-year Treasury Bill rate, which aligns closely with 5.6% at present. This system is entirely non-dilutive, meaning it does not involve any equity-based stipulations.
Gary Atkinson, CEO of Algorhythm, expressed his enthusiasm for this achievement, stating, “This milestone showcases our value as a strategic partner and illustrates the quality of capital now available to SemiCab. Our global clients’ financing strategies will enable us to leverage their remarkably low capital costs for harnessing accounts receivable collection. This facility allows immediate access to working capital at significantly reduced rates, letting us expand quickly without leaning heavily on capital markets for equity.”
Atkinson further elaborated, “By combining this program with our recent $4.4 million financing, we are now well-prepared for the upcoming years to underpin SemiCab’s accelerated growth. Our priority is to broaden these client-centered financing options across additional partnerships, solidifying our path to becoming a leading force in AI-driven logistics and distribution solutions.”
Understanding Algorhythm’s Mission
Algorhythm Holdings, Inc. is dedicated to leveraging artificial intelligence to propel the growth of SemiCab, a dynamic player in the global logistics and distribution landscapes. Since its inception, SemiCab has been revolutionizing how major retailers, brands, and transportation partners manage their supply chain challenges on a worldwide scale.
At the heart of SemiCab’s operations lies its AI-powered, cloud-based Collaborative Transportation Platform, which achieves the necessary scalability to efficiently predict and optimize millions of loads along with hundreds of thousands of trucks. The platform utilizes real-time data through API-based load tendering and established partnerships with Transportation Management Systems (TMS) and Electronic Logging Device (ELD) solutions to facilitate collaboration among manufacturers, retailers, distributors, and carriers.
SemiCab's innovative use of AI and Machine Learning allows for optimization in transportation logistics, ensuring that shippers incur lower costs while carriers significantly increase their profitability, all without needing operational changes. This efficiency is crucial as the logistics industry continues to evolve rapidly, demanding more from its participants in terms of innovation and responsiveness.
Future Prospects for SemiCab
With the recent financial support from Bank of America and other rounds of successful financing, Algorhythm is positioned to enhance SemiCab’s capacity for growth fiercely. As companies around the world learn the importance of agile and effective supply chain management, SemiCab’s offerings have become indispensable.
Looking ahead, Algorhythm and SemiCab are committed to broadening their financial solutions across diverse business relationships. The ability to adapt and create solutions reflected in customer needs ensures that SemiCab remains at the forefront of the logistics sector.
Moving Forward Together
The announcement of the supply chain finance facility signals a new chapter not only for Algorhythm but for SemiCab as well. The process of enhancing operational efficiency while providing value to customers through innovative technology aligns perfectly with Algorhythm’s vision of leading in AI-powered technology.
Both the management team and stakeholders can be confident that this collaboration with Bank of America will catalyze further growth, enabling SemiCab to solidify its market leadership while continuing to refine its services in logistics.
Frequently Asked Questions
What is the purpose of the finance facility with Bank of America?
The facility offers SemiCab India low-cost, non-dilutive working capital to expedite payments for eligible accounts receivable.
How does this facility benefit SemiCab’s customers?
It ensures that SemiCab can provide faster and more efficient services by leveraging accelerated payment structures, enhancing operational speed.
Is this facility related to equity financing?
No, the facility is purely non-dilutive and has no equity or equity-linked provisions.
What position does Algorhythm Holdings (NASDAQ: RIME) aim for in the market?
Algorhythm aims to establish SemiCab as a leader in AI-enhanced logistics and distribution solutions.
How are AI technologies being used in SemiCab’s operations?
SemiCab employs AI and Machine Learning for predicting logistics loads, optimizing transportation routes, and overall enhancing collaboration among supply chain partners.
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