Algorhythm Holdings Announces Termination of its At-the-Market Equity Program
Algorhythm Holdings (NASDAQ: RIME) has terminated its at-the-market (ATM) equity program with Ascendiant Capital, The company successfully raised approximately $1.4 million in gross proceeds, selling about 2.16 million shares of common stock at an average price of $0.65 per share.
CEO Gary Atkinson stated that the ATM was the most cost-effective way to raise equity capital without issuing warrants or providing market discounts. The proceeds will provide working capital for the company's global karaoke brand, Singing Machine, and its AI logistics business, SemiCab.
Algorhythm is preparing for a strong fourth quarter, with its karaoke division ramping up for holiday sales and its automotive karaoke microphone business aiming to secure its first OEM partnership. The company's AI logistics business is gaining momentum, winning new clients and expanding existing relationships.
Algorhythm Holdings (NASDAQ: RIME) ha terminato il suo programma di azioni at-the-market (ATM) con Ascendiant Capital. L’azienda ha raccolto con successo circa 1,4 milioni di dollari in proventi lordi, vendendo circa 2,16 milioni di azioni ordinarie a un prezzo medio di $0,65 per azione.
Il CEO Gary Atkinson ha dichiarato che l'ATM era il modo più conveniente per raccogliere capitale senza emettere warrant o offrire sconti sul mercato. I proventi forniranno capitale circolante per il marchio karaoke globale dell’azienda, Singing Machine, e per la sua attività di logistica AI, SemiCab.
Algorhythm si sta preparando per un quarto trimestre forte, con la sua divisione karaoke che si sta attrezzando per le vendite natalizie e il suo business di microfoni karaoke per auto che punta a ottenere la sua prima partnership con un produttore di apparecchiature originali (OEM). L’attività di logistica AI dell’azienda sta guadagnando slancio, acquisendo nuovi clienti ed espandendo le relazioni esistenti.
Algorhythm Holdings (NASDAQ: RIME) ha terminado su programa de acciones at-the-market (ATM) con Ascendiant Capital. La compañía recaudó con éxito aproximadamente 1.4 millones de dólares en ingresos brutos, vendiendo cerca de 2.16 millones de acciones ordinarias a un precio promedio de $0.65 por acción.
El CEO Gary Atkinson afirmó que el ATM era la forma más rentable de recaudar capital sin emitir garantías ni ofrecer descuentos en el mercado. Los ingresos proporcionarán capital de trabajo para la marca de karaoke global de la empresa, Singing Machine, y su negocio de logística de IA, SemiCab.
Algorhythm se está preparando para un fuerte cuarto trimestre, con su división de karaoke intensificando los esfuerzos para las ventas navideñas y su negocio de micrófonos de karaoke para automóviles buscando asegurar su primera asociación OEM. El negocio de logística de IA de la compañía está ganando impulso, ganando nuevos clientes y expandiendo relaciones existentes.
Algorhythm Holdings (NASDAQ: RIME)는 Ascendiant Capital과의 시장 거래 (ATM) 주식 프로그램을 종료했습니다. 회사는 약 140만 달러의 총 수익을 성공적으로 모금했습니다, 평균 가격 $0.65 per share로 약 216만 주의 보통주를 판매했습니다.
CEO Gary Atkinson은 ATM이 권리증서 또는 시장 할인 없이 자본을 모금하는 가장 비용 효율적인 방법이라고 밝혔습니다. 수익은 회사의 글로벌 노래방 브랜드인 Singing Machine과 AI 물류 사업인 SemiCab의 운영 자본을 제공합니다.
Algorhythm은 강력한 4분기를 준비하고 있으며, 노래방 부서는 연말 판매를 증가시키고 있으며, 자동차 노래방 마이크 사업은 최초의 OEM 파트너십을 확보하는 것을 목표로 하고 있습니다. 회사의 AI 물류 사업은 새로운 고객을 수주하고 기존 관계를 확장하며 추진력을 얻고 있습니다.
Algorhythm Holdings (NASDAQ: RIME) a mis fin à son programme d'actions at-the-market (ATM) avec Ascendiant Capital. L'entreprise a réussi à lever environ 1,4 million de dollars de recettes brutes, en vendant environ 2,16 millions d'actions ordinaires à un prix moyen de 0,65 $ par action.
Le PDG Gary Atkinson a déclaré que l'ATM était le moyen le plus économique de lever des capitaux propres sans émettre de bons de souscription ni offrir des remises sur le marché. Les recettes fourniront du capital de travail pour la marque de karaoké mondiale de l'entreprise, Singing Machine, et son activité de logistique AI, SemiCab.
Algorhythm se prépare à un quatrième trimestre solide, avec sa division karaoké qui se prépare pour les ventes de fin d'année et son activité de microphones de karaoké pour automobile qui vise à sécuriser son premier partenariat OEM. L'activité de logistique AI de l'entreprise prend de l'ampleur, remportant de nouveaux clients et élargissant les relations existantes.
Algorhythm Holdings (NASDAQ: RIME) hat sein At-the-Market (ATM) Aktienprogramm mit Ascendiant Capital beendet. Das Unternehmen hat erfolgreich etwa 1,4 Millionen Dollar an Bruttoerlösen gesammelt und etwa 2,16 Millionen Stammaktien zu einem durchschnittlichen Preis von $0,65 pro Aktie verkauft.
CEO Gary Atkinson erklärte, dass das ATM der kostengünstigste Weg war, um Eigenkapital zu beschaffen, ohne Warrants auszugeben oder Marktabschläge anzubieten. Die Erlöse werden Arbeitskapital für die globale Karaoke-Marke des Unternehmens, Singing Machine, und ihr Geschäft mit KI-Logistik, SemiCab, bereitstellen.
Algorhythm bereitet sich auf ein starkes viertes Quartal vor, wobei die Karaoke-Sparte sich auf den Feiertagsverkauf vorbereitet und das Karaoke-Mikrofon-Geschäft für Autos darauf abzielt, seine erste OEM-Partnerschaft zu sichern. Das KI-Logistikgeschäft des Unternehmens gewinnt an Schwung, gewinnt neue Kunden und erweitert bestehende Beziehungen.
- Raised $1.4 million in gross proceeds through ATM program
- Sold 2.16 million shares at an average price of $0.65 per share
- Strengthened liquidity without issuing warrants or providing market discounts
- Karaoke division preparing for peak holiday sales season
- Automotive karaoke microphone business on track for first OEM partnership by Q4 2024
- AI logistics business gaining momentum with new and expanding client relationships
- Dilution of existing shareholders due to issuance of 2.16 million new shares
Insights
Algorhythm Holdings' termination of its ATM equity program is a significant development. The company successfully raised
The strategic use of the ATM program demonstrates prudent financial management, providing working capital for both the Singing Machine karaoke brand and the emerging SemiCab AI logistics business. The
The company's dual focus on seasonal karaoke sales and expanding AI logistics presents a diversified growth strategy. The potential OEM partnership for automotive karaoke microphones and the expansion of the logistics business in both the U.S. and India suggest multiple revenue streams and market opportunities.
While the capital raise is positive, investors should monitor how effectively the company deploys this capital to drive growth and profitability in the upcoming quarters, especially given the relatively small market cap of
Algorhythm Holdings' strategic positioning in both consumer electronics and AI logistics showcases a forward-thinking approach to market diversification. The Singing Machine brand's focus on automotive karaoke microphones indicates an innovative product expansion, potentially tapping into the growing in-car entertainment market.
The company's emphasis on AI-driven logistics is particularly intriguing. As supply chain optimization becomes increasingly critical, SemiCab's AI logistics solutions could provide a significant competitive edge. The mention of client acquisitions and relationship expansions in both the U.S. and Indian markets suggests growing market validation for their technology.
However, investors should be aware of the challenges in managing two distinct business lines - consumer electronics and AI logistics. The success of this strategy will depend on effective resource allocation and management expertise across these different sectors. The upcoming holiday season will be a important test for the karaoke division, while the logistics arm's performance in onboarding and retaining clients will be key indicators of long-term viability.
Fort Lauderdale, FL, Oct. 08, 2024 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (“Algorhythm”) (NASDAQ: RIME), an AI-driven technology and consumer electronics holding company, announced it has terminated its “at-the-market” (“ATM”) equity program with Ascendiant Capital, LLC, as sales agent (the “Agent”). The Company elected to terminate the ATM because it had achieved its objective of raising capital under the ATM. Through the utilization of the most recently amended ATM, the Company raised approximately
Gary Atkinson, the Company’s CEO commented, “We’re pleased to have successfully utilized the ATM as the most cost-effective form of raising equity capital. The Company successfully met its goal of bolstering its balance sheet without issuing warrants or providing a discount to market. The proceeds from the ATM will provide the Company with access to working capital while we continue to execute on the respective business objectives for our global karaoke brand, the Singing Machine, and our rapidly emerging AI logistics business, SemiCab.”
“Our two holdings are positioned for an exciting fourth quarter. Our karaoke consumer electronics division is ramping up for peak sales during the holiday shopping season, with our automotive karaoke microphone business on track to secure its first OEM partnership by the end of Q4 2024. As announced yesterday, our U.S.-based AI logistics business continues to gain momentum, winning new clients and expanding existing relationships. Meanwhile, our Indian AI logistics business is in the final stages of acquisition integration and is set to onboard several key clients in the coming quarter.”
“With this positive momentum, we are pleased to strengthen our liquidity, strategically reduce leverage on the balance sheet, and accelerate operations across all areas,” concluded Mr. Atkinson.
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
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.algoholdings.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, 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.
FAQ
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