Algorhythm Holdings, Inc. (NASDAQ:RIME), a manufacturer of phonograph records and prerecorded audio tapes and disks currently valued at $12.69 million, has announced the results of its Annual Meeting of Stockholders held on Monday.
According to InvestingPro data, the company’s stock has fallen nearly 85% over the past year and is currently trading at $0.10, significantly below its 52-week high of $1.97. Shareholders voted in favor of several key proposals, including a significant increase in the number of authorized shares and a potential reverse stock split.
During the meeting, shareholders elected all six director nominees to serve until the next annual meeting in 2025. The approved proposals included the amendment of the company’s certificate of incorporation to expand the authorized common stock from 100 million to 800 million shares.
Additionally, shareholders authorized the board of directors to execute a reverse stock split at a ratio ranging from one-for-ten (1-for-10) to one-for-two hundred fifty (1-for-250), to be determined at the board’s discretion within the next year.
The company’s 2022 Equity Incentive Plan was also amended to increase the number of shares available under the plan for future years. Marcum LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
Furthermore, the issuance of warrants and shares of common stock underlying the warrants, issued in a securities offering completed on December 6, 2024, was approved to comply with Nasdaq listing rule 5635(d).
Lastly, the stockholders sanctioned one or more adjournments of the Annual Meeting, if necessary, to solicit additional proxies for the approved proposals if there are not sufficient votes.
The final voting results underscored strong support for the company’s strategic initiatives, with a majority of votes cast in favor of all items on the agenda. These decisions are expected to provide Algorhythm Holdings with increased flexibility in its financial and operational plans moving forward.
InvestingPro analysis reveals the company faces significant challenges, including rapid cash burn and short-term obligations exceeding liquid assets, with a current ratio of 0.87. Subscribers to InvestingPro can access 12 additional key insights and a comprehensive Pro Research Report, which provides detailed analysis of the company’s financial health and future prospects.
This news is based on a press release statement and reflects the latest corporate actions taken by Algorhythm Holdings, as reported in their recent SEC filing.
In other recent news, Algorhythm Holdings, Inc. is facing potential delisting from the Nasdaq Stock Market due to non-compliance with the Bid Price Rule. However, the company plans to request a hearing before the Nasdaq Hearings Panel to delay any delisting actions. In financial developments, Algorhythm Holdings recently announced a direct offering of its common stock expected to result in $2 million in gross proceeds, and priced a public offering projected to generate approximately $9.5 million in gross proceeds. Univest Securities served as the exclusive placement agent for both offerings.
Additionally, Algorhythm Holdings secured approximately $2 million in funding through a Securities Purchase Agreement, issuing 2,300,000 shares of common stock. The funds are planned for working capital and other general corporate purposes. In terms of compliance, Algorhythm Holdings successfully regained compliance with Nasdaq’s minimum stockholders’ equity requirement after a period of non-compliance, achieved through a compliance plan that included an At-The-Market Issuance Sales Agreement with Ascendiant Capital Markets and the acquisition of SemiCab, Inc. These are recent developments for Algorhythm Holdings, Inc.
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