Auddia Secures $750K in Preferred Stock and Warrants

RADIO ONLINE | Monday, June 30, 2025 | 4:46pm CT

Auddia

Auddia Inc. has announced that it has entered into a securities purchase agreement with accredited investors to raise $750,000 through the issuance of convertible preferred stock and warrants.

Under the terms of the agreement, Auddia issued 750 shares of Series C Convertible Preferred Stock priced at $1,000 per share. These shares are convertible into common stock at an initial conversion price of $4.77 per share. In addition, the company granted investors warrants to purchase 314,466 shares of common stock, also at an exercise price of $4.77, with a five-year term.

The financing proceeds will be used to repay outstanding debt and support general corporate purposes.

The Series C Preferred Stock carries a 15% annual dividend, payable quarterly, and ranks senior to common stock in terms of dividends and liquidation rights. Auddia may opt to pay dividends in common stock under certain conditions, calculated at a price based on recent trading averages.

The preferred shares are convertible at the holder's discretion and may also be converted at the company's option if the stock price exceeds 300% of the conversion price for 20 consecutive trading days. Both the preferred stock and warrants include anti-dilution provisions, subject to shareholder approval, and contain limitations to prevent any investor from holding more than 4.99% of Auddia's common stock post-conversion or exercise.

The financing agreement also includes a registration rights clause, obligating Auddia to file a registration statement within 90 days to register the resale of common shares issuable upon conversion of the preferred stock and exercise of the warrants.

Auddia emphasized that the securities were offered in a private placement exempt from registration under the Securities Act of 1933.

This latest capital infusion comes as Auddia continues to expand its offerings in the digital audio and streaming space.