Auddia Inc. Announces 1-for-25 Reverse Stock Split

RADIO ONLINE | Friday, February 23, 2024 | 10:58am CT

Auddia Inc.

Auddia Inc., an AI platform for audio identification and classification has announced that effective before market open on Tuesday, February 27 it will complete a 1-for-25 reverse stock split of its common stock. On December 29, 2023, the company's stockholders approved an amendment to affect a reverse stock split with the exact ratio to be set by its board of directors. The board resolved to set the reverse stock split at the ratio of 1-for-25.

The company filed an amendment to its certificate of incorporation with the Secretary of State in Delaware effective February 26, at 5pm. As a result, every twenty five (25) issued shares of common stock will automatically be combined into one share of common stock.

The company believes that affecting the reverse stock split will assist in its efforts to meet the Nasdaq continued listing standards and to continue to have its common stock remain listed and traded on Nasdaq. In particular, Auddia expects the reverse stock split to increase the per share price and bid price of its common stock above the $1.00 required by Nasdaq's minimum bid price rule.

Shares of the Company's common stock will be assigned a new CUSIP number (05072K 206) and are expected to begin trading on a split-adjusted basis on Tuesday, February 27.

The reverse stock split will not change the authorized number of shares of common stock. No fractional shares will be issued and any fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share. Therefore, stockholders with less than 25 shares will receive one share of stock.

The reverse stock split will apply to the company's outstanding warrants, stock options and restricted stock units. The number of shares of common stock into which these outstanding securities are convertible or exercisable will be adjusted proportionately as a result of the reverse stock split. The exercise prices of any outstanding warrants or stock options will also be proportionately adjusted in accordance with the terms of those securities and the Company's equity incentive plans.

Once the reverse stock split becomes effective, stockholders holding shares through a brokerage account will have their shares automatically adjusted to reflect the 1-for-25 reverse stock split. Existing stockholders holding common stock certificates will receive a letter of transmittal from Auddia's transfer agent, Vstock Transfer, with specific instructions regarding the exchange of shares.

Auddia expects to have its issued and outstanding common shares decrease from approximately 20.47 million pre-split shares to approximately 818,000 post-split shares outstanding as a result of the reverse stock split.