Algorhythm Holdings, Inc. (RIME): debt financing — Algorhythm enters $20M prepaid purchase with Streeterville; director Kling resigns

Algorhythm Holdings, Inc.

Entered up to $20M prepaid purchase agreement with Streeterville; initial $4.39M at 9%, 3-yr maturity.
Net proceeds ~$4M after $360K OID and $30K expenses; used for working capital.
Issued 95,694 commitment shares; resale registration due within 30 days.
Additional purchases up to $3M outstanding, 9% OID; floor price at greater of 20% Nasdaq minimum or $0.10.
Director Joseph Kling resigned from board effective Aug 21, no disagreement.

item 1.01 item 2.03 item 3.02 item 5.02 item 9.01

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 debt of $4,390,000 with Streeterville Capital, LLC at nine percent (9%) per annum maturing three years.

Principal: $4,390,000
Counterparty: Streeterville Capital, LLC
Rate: nine percent (9%) per annum
Maturity: three years
Event: incurrence

Exact text from the filing

The Securities Purchase Agreement provides for an initial Pre-Paid Purchase in the principal amount of $4,390,000, before deducting an original issue discount of $360,000 and transaction expenses of $30,000 (the "Initial Pre-Paid Purchase"), the terms of which are set forth on secured prepaid purchase #1 ("Secured Pre-Paid Purchase #1"). The Initial 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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Algorhythm Holdings, Inc. filing history →

Source: SEC EDGAR

accession 0001641172-25-025707

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