secwatch.observer — SEC 8-K summary
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Issuer:     Algorhythm Holdings, Inc. (RIME)
CIK:        0000923601
Form:       8-K
Filed at:   2024-12-06T23:59:59+00:00
Accession:  0001493152-24-049091
Event type: other_material
Sentiment:  negative
Materiality: 0.70
Item codes: 1.01, 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Algorhythm Holdings closes $9.5M unit offering; repurchases shares from Stingray Group
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- Offering of 55.9M shares/pre-funded warrants and Series A/B warrants at $0.17/unit raised ~$9.5M gross, ~$8.37M net.
- Net proceeds to fund working capital and repay $2.35M in senior secured notes.
- Repurchased 1,098,901 shares from Stingray Group for a promissory note at market price; shares to be cancelled.
- Director Mathiew Peloquin is SVP at Stingray Group, making the repurchase a related-party transaction.
- Series A warrants exercisable at $0.17 for 5 yrs; Series B at $0.34 for 2.5 yrs; exercise requires shareholder approval.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/923601/000149315224049091/0001493152-24-049091-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/923601/000149315224049091/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-24-049091

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer