Algorhythm Holdings, Inc. (RIME): debt financing — Algorhythm Holdings enters $10.355M secured prepaid purchase with Streeterville Capital

Algorhythm Holdings, Inc.

Principal amount $10.355M with $855K original issue discount; net proceeds $9.5M; $3.5M placed in restricted deposit account as collateral.
Interest at 9% per annum, maturity 3 years; prepayment permitted at 110% of outstanding balance with 10 trading days notice.
Streeterville may convert portions of outstanding balance into common shares at its discretion, subject to 9.99% ownership cap and floor price.
Note secured by cash in DACA account, security agreement, IP security agreement, and guaranty from subsidiary RIME Holdings.
Univest Securities received 8% cash fee on $6M proceeds not placed in DACA account; additional 8% fee on DACA funds when released to company.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Algorhythm Holdings, Inc. incurred loan of $10,355,000 with Streeterville Capital, LLC at 9% per annum maturing three years.

Instrument: loan
Principal: $10,355,000
Counterparty: Streeterville Capital, LLC
Rate: 9% per annum
Maturity: three years
Event: incurrence

Exact text from the filing

Secured Pre-Paid Purchase #4 provides for a fourth Pre-Paid Purchase in the principal amount of $10,355,000, before deducting an original issue discount of $855,000 (the “Fourth Pre-Paid Purchase”). The Fourth Pre-Paid Purchase accrues interest at the rate of nine percent (9%) per annum and has a maturity date of three years.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Algorhythm Holdings, Inc. entered into Secured Pre-Paid Purchase #4 with Streeterville Capital, LLC valued at $10,355,000 (effective 2026-02-17).

Action: entry
Agreement: equity purchase
Counterparty: Streeterville Capital, LLC
Value: $10,355,000
Effective: 2026-02-17

Exact text from the filing

On February 17, 2026, Algorhythm Holdings, Inc. (the “Company”) entered into Secured Pre-Paid Purchase #4 with Streeterville Capital, LLC, a Utah limited liability company (“Streeterville”), under that certain securities purchase agreement (the “Securities Purchase Agreement”), dated August 21, 2025, between the Company and Streeterville.

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Algorhythm Holdings, Inc. filing history →

Source: SEC EDGAR

accession 0001493152-26-007763

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