Auddia Withdraws S-1 to Finance Acquisition of Radio FM

RADIO ONLINE | Thursday, March 7, 2024

Auddia

Auddia Inc. is withdrawing the S-1 on file to secure the financing to acquire Radio FM, an AM/FM radio streaming app. Both parties have agreed to terminate the current purchase agreement and the company plans to reengage with Radio FM in the future should the opportunity arise. Auddia expects to continue to advance discussions with the remaining two targets under LOI and reiterates that a purchase agreement for target #2 is expected to be signed in Q2.

"We have been pursuing an aggressive AM/FM streaming app acquisition strategy by negotiating with three targets simultaneously," said Auddia Executive Chairman Jeff Thramann. "It is now clear that market conditions are unfavorable for securing the largest acquisition as our first target. As such, to optimize shareholder value we are withdrawing the current S-1 on file that contemplates the Radio FM acquisition."

Auddia CFO John Mahoney added, "As we executed the purchase agreement for Radio FM and began to explore financing options in the current market, it became clear that a far more capital efficient process would be to proceed with acquiring target #2 followed by target #3, both of which require substantially less cash at closing. Once these targets are successfully integrated and synergies are demonstrated, we will be in a stronger position to pursue larger opportunities in our space."