Auddia Announces Closing of $2.3M PIPE to Eliminate Debt and Regain Nasdaq Compliance
BOULDER, CO, April 29, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire -- Auddia Inc. (NASDAQ:AUUD) (NASDAQ:AUUDW) ("Auddia" or the "Company"), a developer of a proprietary AI platform for audio and innovative technologies for podcasts that is reinventing how consumers engage with audio, today announced that it has closed a private placement of $2.3 million of convertible preferred stock and common stock warrants.
"When I joined the Company at the end of last year, a primary objective was to strengthen our balance sheet by eliminating debt and better positioning the Company to meet Nasdaq's stockholders' equity requirement," said John Mahoney, CFO for Auddia. "This financing retires all existing debt on our balance sheet. We believe that the closing of this private placement, together with other recent financing activities, will bring the Company back into compliance with the Nasdaq stockholders' equity requirement for continued listing."
By strengthening the balance sheet and regaining compliance with the Nasdaq stockholders' equity listing requirement, the Company believes it is better positioned to execute on its business plan, including its plans to pursue potential future acquisitions of complementary businesses.
The Company will use the proceeds from this private placement. together with other available cash resources, to repay $2.75 million of existing debt.
As previously announced, the Company also recently converted approximately $900,000 of accrued interest and original issue discount on existing debt into equity securities of the Company.
In addition, since January 1, 2024, the Company has raised $4.5 million from its existing equity line. Following the Company's most recent equity line activity, the Company has 2,594,196 common shares outstanding as of April 26, 2024.
About Auddia Inc.
Auddia, through its proprietary AI platforms for audio, is reinventing how consumers engage with AM/FM radio, podcasts, music, and other audio content. Auddia's flagship audio superapp, called faidr, brings three industry firsts to the audio-streaming landscape: subscription-based, ad-free listening on any AM/FM radio station; podcasts with interactive digital feeds that support deeper stories and create new revenue streams for podcasters; and a proprietary chat interface for music. faidr also delivers exclusive content and playlists, and showcases exciting new artists, hand-picked by curators and DJs. All differentiated offerings address large and rapidly growing audiences.
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, 2023, as well as other disclosures contained in the Annual Report 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 Relations:
Kirin Smith, President
PCG Advisory, Inc.
[email protected]
www.pcgadvisory.com
