Auddia Announces Reverse Stock Split
Auddia Inc. (NASDAQ: AUUD) announced a 1-for-17 reverse stock split effective March 31, 2025, before market open. The split aims to meet Nasdaq's continued listing requirements, particularly the $1.00 minimum bid price rule.
The company's outstanding shares will decrease from approximately 8.67 million to 510,000 post-split. The reverse split will affect all securities, including preferred stock, warrants, stock options, and restricted stock units, with proportional adjustments to conversion and exercise prices.
No fractional shares will be issued, with any fractional shares being rounded up to the nearest whole share at the participant level. Stockholders with brokerage accounts will have shares automatically adjusted, while those holding physical certificates will receive specific exchange instructions from Vstock Transfer.
Auddia Inc. (NASDAQ: AUUD) ha annunciato un raggruppamento azionario 1-per-17 che entrerà in vigore il 31 marzo 2025, prima dell'apertura del mercato. Questo raggruppamento mira a soddisfare i requisiti di quotazione continuativa di Nasdaq, in particolare la regola del prezzo minimo di offerta di $1.00.
Il numero di azioni in circolazione della società diminuirà da circa 8,67 milioni a 510.000 dopo il raggruppamento. Il raggruppamento influenzerà tutti i titoli, comprese le azioni privilegiate, i warrant, le opzioni su azioni e le unità di azioni riservate, con adeguamenti proporzionali ai prezzi di conversione e di esercizio.
Non saranno emesse azioni frazionarie; eventuali azioni frazionarie verranno arrotondate al numero intero più vicino a livello di partecipante. Gli azionisti con conti di intermediazione avranno le azioni automaticamente adeguate, mentre coloro che detengono certificati fisici riceveranno istruzioni specifiche per lo scambio da Vstock Transfer.
Auddia Inc. (NASDAQ: AUUD) anunció un split inverso de acciones 1 por 17 que entrará en vigor el 31 de marzo de 2025, antes de la apertura del mercado. El objetivo del split es cumplir con los requisitos de cotización continua de Nasdaq, particularmente la regla del precio mínimo de oferta de $1.00.
Las acciones en circulación de la compañía disminuirán de aproximadamente 8.67 millones a 510,000 después del split. El split inverso afectará a todos los valores, incluidas las acciones preferentes, los warrants, las opciones sobre acciones y las unidades de acciones restringidas, con ajustes proporcionales a los precios de conversión y ejercicio.
No se emitirán acciones fraccionarias; cualquier acción fraccionaria se redondeará al número entero más cercano a nivel de participante. Los accionistas con cuentas de corretaje tendrán sus acciones ajustadas automáticamente, mientras que aquellos que posean certificados físicos recibirán instrucciones específicas de intercambio de Vstock Transfer.
Auddia Inc. (NASDAQ: AUUD)는 2025년 3월 31일 시장 개장 전에 시행되는 1대 17 역분할을 발표했습니다. 이 분할은 Nasdaq의 지속적인 상장 요건, 특히 $1.00 최소 입찰가 규정을 충족하기 위한 것입니다.
회사의 발행 주식 수는 분할 후 약 867만 주에서 51만 주로 감소합니다. 역분할은 우선주, 워런트, 주식 옵션 및 제한된 주식 단위를 포함한 모든 증권에 영향을 미치며, 전환 및 행사 가격에 대한 비례 조정이 이루어집니다.
분할된 주식은 발행되지 않으며, 모든 분할 주식은 참여자 수준에서 가장 가까운 정수로 반올림됩니다. 중개 계좌를 가진 주주들은 자동으로 주식이 조정되며, 물리적 증서를 보유한 주주들은 Vstock Transfer로부터 특정 교환 지침을 받게 됩니다.
Auddia Inc. (NASDAQ: AUUD) a annoncé un rachat d'actions inverse 1 pour 17 qui prendra effet le 31 mars 2025, avant l'ouverture du marché. Ce rachat vise à respecter les exigences de cotation continue de Nasdaq, en particulier la règle du prix d'offre minimum de 1,00 $.
Le nombre d'actions en circulation de la société passera d'environ 8,67 millions à 510 000 après le rachat. Le rachat inversé affectera tous les titres, y compris les actions privilégiées, les bons de souscription, les options d'achat d'actions et les unités d'actions restreintes, avec des ajustements proportionnels des prix de conversion et d'exercice.
Aucune action fractionnaire ne sera émise, les actions fractionnaires étant arrondies au nombre entier le plus proche au niveau des participants. Les actionnaires disposant de comptes de courtage auront leurs actions automatiquement ajustées, tandis que ceux détenant des certificats physiques recevront des instructions spécifiques d'échange de Vstock Transfer.
Auddia Inc. (NASDAQ: AUUD) hat einen 1-für-17 Rücksplit angekündigt, der am 31. März 2025 vor Markteröffnung wirksam wird. Der Split zielt darauf ab, die fortlaufenden Listing-Anforderungen von Nasdaq zu erfüllen, insbesondere die Regel für den Mindestgebotspreis von 1,00 $.
Die ausstehenden Aktien des Unternehmens werden nach dem Split von etwa 8,67 Millionen auf 510.000 sinken. Der Rücksplit wird alle Wertpapiere betreffen, einschließlich Vorzugsaktien, Warrants, Aktienoptionen und eingeschränkten Aktieneinheiten, mit proportionalen Anpassungen der Umwandlungs- und Ausübungspreise.
Es werden keine Bruchstücke ausgegeben, wobei alle Bruchstücke auf die nächstgelegene ganze Aktie auf Teilnehmerniveau aufgerundet werden. Aktionäre mit Brokerage-Konten haben ihre Aktien automatisch angepasst, während diejenigen, die physische Zertifikate halten, spezifische Austausch-Anweisungen von Vstock Transfer erhalten werden.
- Strategic move to maintain Nasdaq listing compliance
- No loss of value from fractional shares as they will be rounded up
- Significant share consolidation indicates previous stock price weakness
- Potential indication of ongoing financial challenges requiring artificial share price support
Insights
Auddia's announced 1-for-17 reverse stock split is a defensive financial maneuver primarily aimed at maintaining its Nasdaq listing by artificially boosting its share price above the
The consolidation will drastically reduce Auddia's outstanding shares from 8.67 million to approximately 510,000, but importantly, this mathematical adjustment doesn't change the company's underlying fundamentals, market capitalization, or enterprise value. Shareholders will own fewer shares, each worth proportionally more.
Reverse splits typically signal underlying financial distress, as they're commonly employed by companies experiencing prolonged share price deterioration. With Auddia trading at about
While the split helps Auddia maintain its Nasdaq presence—preserving liquidity access, visibility, and potentially preventing forced selling by institutional investors restricted from holding OTC securities—it doesn't address the fundamental issues driving the share price decline. The market often responds negatively to reverse splits, viewing them as confirmation of operational challenges rather than solutions to them.
BOULDER, Colo., March 27, 2025 (GLOBE NEWSWIRE) -- Auddia Inc., (“Auddia” or the “Company”) (NASDAQ: AUUD, AUUDW), an AI first technology company that has built a proprietary AI platform for audio identification and classification to reinvent how consumers engage with audio, today announced that effective before market open on Monday March 31, 2025, it will complete a 1-for-17 reverse stock split of its common stock.
On December 30, 2024, the Company’s stockholders approved an amendment to the Company’s Certificate of Incorporation to affect a reverse stock split with the exact ratio to be set by its Board of Directors. The Board resolved to set the reverse stock split at the ratio of 1-for-17. The Company filed an amendment to its Certificate of Incorporation with the Secretary of State in Delaware effective March 28, 2025, at 5:00 p.m. Eastern Time. As a result, every seventeen (17) issued shares of common stock will automatically be combined into one share of common stock.
The Company believes that affecting the reverse stock split will assist in its efforts to meet the Nasdaq continued listing standards and to continue to have its common stock remain listed and traded on Nasdaq. In particular, the Company expects the reverse stock split to increase the per share price and bid price of its common stock above the
Shares of the Company’s common stock will be assigned a new CUSIP number (05072K 305) and are expected to begin trading on a split-adjusted basis on Monday, March 31, 2025.
The reverse stock split will not change the authorized number of shares of the Company’s common stock. No fractional shares will be issued in connection with the reverse stock split. In lieu thereof, any fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share at the participant level. The Company does not intend to round up fractional shares at the beneficial level and will instead round any such fractional shares up at the participant level with DTC.
The reverse stock split will apply to the Company’s outstanding preferred stock, warrants, stock options and restricted stock units. The number of shares of common stock into which these outstanding securities are convertible or exercisable will be adjusted proportionately as a result of the reverse stock split. The conversion or exercise prices of any outstanding preferred stock, warrants or stock options will also be proportionately adjusted in accordance with the terms of those securities and the Company’s equity incentive plans.
Once the reverse stock split becomes effective, stockholders holding shares through a brokerage account will have their shares automatically adjusted to reflect the 1-for-17 reverse stock split. Existing stockholders holding common stock certificates will receive a letter of transmittal from Auddia’s transfer agent, Vstock Transfer, with specific instructions regarding the exchange of shares.
The Company expects to have its issued and outstanding common shares decrease from approximately 8.67 million pre-split shares to approximately 510,000 post-split shares outstanding as a result of the reverse stock split.
About Auddia Inc.
Auddia, through its proprietary AI platform for audio identification and classification, is reinventing how consumers engage with AM/FM radio, podcasts, and other audio content. Auddia’s flagship audio superapp, called faidr, brings multiple industry firsts to the audio streaming landscape that include:
- subscription based, ad free listening on any AM/FM radio station
- content skipping across any AM/FM station
- one touch skipping of entire podcast ad breaks
- subscription based, ad free listening to podcast partners
faidr also delivers exclusive content and playlists, and showcases exciting new artists, hand-picked by curators and DJs. For more information, visit: www.auddia.com.
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 and Section 21E of the Securities Exchange Act of 1934 about the Company's current expectations about future results, performance, prospects and opportunities. Statements that are not historical facts, such as "anticipates," "believes" and "expects" or similar expressions, are forward-looking statements. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the Company's current plans and expectations, as well as future results of operations and financial condition. These and other risks and uncertainties are discussed more fully in our filings with the Securities and Exchange Commission. Readers are encouraged to review the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as well as other disclosures contained in the Prospectus and subsequent filings made with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Contacts:
Kirin M. Smith
PCG Advisory, Inc.
646.823.8656
ksmith@pcgadvisory.com
FAQ
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