Algorhythm Holdings pauses new capital raising efforts for six months and plans a reverse stock split to regain Nasdaq compliance.
Quiver AI Summary
Algorhythm Holdings, Inc. announced it will pause new capital raising activities for six months due to its current cash position and market conditions. The company will refrain from seeking new investments, including At-the-Market offerings, during this period. Algorhythm plans to ask stockholders for approval of a reverse stock split at its upcoming annual meeting in January 2025 to meet Nasdaq's minimum bid requirements. CEO Gary Atkinson expressed optimism about 2025, highlighting that their subsidiary, SemiCab, has sufficient working capital to enhance freight movement through its AI technology. SemiCab aims to optimize logistics processes and reduce costs while improving sustainability in the transportation sector. Algorhythm's other investment includes The Singing Machine Company, a leader in consumer karaoke products.
Potential Positives
- Algorhythm is taking a strategic pause on new capital raising activities for six months, indicating an assessment of its current cash position and market conditions, which may lead to improved financial stability.
- The company plans to implement a reverse stock split to regain compliance with Nasdaq’s minimum bid requirement, reflecting an effort to strengthen its stock position.
- CEO Gary Atkinson expressed confidence in the company's outlook for 2025, suggesting a positive direction for business operations and growth opportunities.
- SemiCab's AI technology has demonstrated its ability to significantly increase truck utilization and reduce logistics costs, which positions Algorhythm as a leader in the sustainable logistics sector with the potential for substantial cost savings for its clients.
Potential Negatives
- The decision to pause new capital raising activities for six months signals potential financial difficulties and a lack of confidence in the company's short-term cash position.
- The planned reverse stock split to regain compliance with Nasdaq's minimum bid requirement could indicate a decline in shareholder value and investor concern.
- The need to suspend seeking new investments may reflect broader issues in the market environment that could affect future growth opportunities.
FAQ
Why is Algorhythm pausing new capital raising activities?
Algorhythm is pausing capital raising to assess its cash position and the current market environment for the next six months.
What financing plans are suspended during this period?
The Company will not pursue new investments, including “At-the-Market” offerings or using its Shelf registration statement.
What is the purpose of the proposed reverse stock split?
The reverse stock split aims to help Algorhythm regain compliance with Nasdaq's minimum bid requirement.
How will SemiCab utilize its AI technology?
SemiCab will use its AI platform to optimize freight movement, reduce empty miles, and enhance logistics efficiency.
What impact does SemiCab's technology have on the environment?
SemiCab’s optimization can significantly reduce CO2 emissions and improve truck utilization rates, contributing to sustainability goals.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$RIME Insider Trading Activity
$RIME insiders have traded $RIME stock on the open market 22 times in the past 6 months. Of those trades, 0 have been purchases and 22 have been sales.
Here’s a breakdown of recent trading of $RIME stock by insiders over the last 6 months:
- MILTON C III AULT has traded it 22 times. They made 0 purchases and 22 sales, selling 863,000 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
Full Release
Fort Lauderdale, FL, Dec. 23, 2024 (GLOBE NEWSWIRE) --
Algorhythm Holdings, Inc. (“Algorhythm” or the “Company”) (NASDAQ:
RIME
) – an AI technology and consumer electronics holding company, announced it will pause new capital raising activities for the next six months. In light of the Company's current cash position, combined with a comprehensive assessment of the current market environment and our business operations, our management team has decided to suspend seeking out any new financing plans for the next six months. During this period, the Company will not seek new investments including transactions like an “At-the-Market” (ATM) offering or usage of the Company’s Shelf registration statement.
Additionally, the Company intends to seek the approval of its stockholders at its upcoming annual meeting of stockholders in January 2025, to implement a reverse stock split of its outstanding common stock to regain compliance with The Nasdaq Stock Market (“Nasdaq”) minimum bid requirement.
“With sufficient capital to execute on our business, we are excited at the outlook for 2025,” commented Gary Atkinson, CEO of Algorhythm. “SemiCab now has the sufficient working capital to take advantage of the demand from its customers as it looks to execute on its mission to utilize its AI software platform to optimize freight movement and reduce empty trucking miles.”
About Algorhythm Holdings
Algorhythm Holdings, Inc. is a holding company with two primary investments. First, the Company owns SemiCab Holdings, an emerging leader in the AI-enabled global logistics industry. Second, the Company owns The Singing Machine Company, the worldwide leader in the consumer karaoke industry.
SemiCab
is a cloud-based Collaborative Transportation Platform built to achieve the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. To orchestrate collaboration across manufacturers, retailers, distributors, and their carriers, SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners. To build fully loaded round trips, SemiCab uses AI/ML predictions and advanced predictive optimization models. On the SemiCab platform, shippers pay less and carriers make more while not having to change a thing.
Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address these common supply-chain problems globally. SemiCab's Orchestrated Collaboration™ AI model has proven to increase transportation capacity, improve asset utilization, reduce empty miles, lower logistics costs, and provide visibility into the entire transportation network. Models show the technology has the capability of saving shippers tens of billions of dollars annually through optimization. Further, SemiCab’s technology also has the potential to play a key role in the improved sustainability model globally. Based on its proven ability to improve truck utilization rates from 65% to over 90%, this results in a dramatic reduction in the carbon footprint of the industry. The optimization of existing truck utilization can add approximately 30% more trucking capacity without adding more trucks, drivers or driven miles which addresses common problems plaguing the industry like severe driver shortage and road congestion. Trucking optimization could also eliminate approximately 25% of CO2 emissions attributable to road freight.
For additional information regarding SemiCab:
http://www.semicab.com
The Singing Machine Company, Inc.
is the worldwide leader in consumer karaoke products. Based in Fort Lauderdale, Florida, and founded over forty years ago, the Company designs and distributes the industry's widest assortment of at-home and in-car karaoke entertainment products. Their portfolio is marketed under both proprietary brands and popular licenses, including Carpool Karaoke and Sesame Street. Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products and is also developing the world’s first globally available, fully integrated in-car karaoke system. The Company also has a new philanthropic initiative,
CARE-eoke by Singing Machine
, to focus on the social impact of karaoke for children and adults of all ages who would benefit from singing. Their products are sold in over 25,000 locations worldwide, including Amazon, Costco, Sam’s Club, Target, and Walmart. To learn more, go to
www.singingmachine.com
.
Investor Relations Contact:
investors@algoholdings.com
www.singingmachine.com/investors
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in the Company's reports to the SEC, including, without limitation the Company’s Transition Report on Form 10-KT for the transition period from April 1, 2023 to December 31, 2023, the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.
You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
