On March 18, the developer of a proprietary AI platform for audio and “innovative technologies for podcasts” that believes it is “reinventing” how consumers engage with audio closed on $3.5 million of new financing by selling 1.3M common shares from its previously announced equity line.
It is now known that it will engage in a significant reverse stock split, effective with the start of Nasdaq’s trading session on Monday.
Auddia Inc., parent of the faidr app that deletes over-the-air radio commercials for paid audio streaming subscribers, is moving ahead with a 1-for-17 reverse stock split of its common stock.
This will effectively push “AUUD” to $3.74 per share, should it close Friday’s trading at $0.22 in value — where it was as of 12:52pm Eastern, falling 10.1% from Thursday’s closing price.
Shareholders at the end of 2024 gave their blessing to a stock split, as shares of the company slipped below 50 cents per share; “AUUD” hasn’t been above $1 since early September 2024, and is down a steep 89% in value from where it was priced one year ago.
While shareholders said yes to a reverse stock split, it left the exact ratio to the company’s board of directors.
In a statement, Auddia said 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 the exchange.
Shares of Auddia common stock will be assigned a new CUSIP number (05072K 305), but the reverse stock split will not change the authorized number of shares of the company’s common stock.
No fractional shares will be issued in connection with the reverse stock split. In lieu thereof, any fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share at the participant level.
The company does not intend to round up fractional shares at the beneficial level and will instead round any such fractional shares up at the participant level with DTC.
With the move, Auddia expects to have its issued and outstanding common shares decrease from approximately 8.67 million pre-split shares to approximately 510,000 post-split shares outstanding.
