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.

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