A Colorado-based company known for a proprietary AI platform for audio identification, classification and related technologies that seeks to reinvent how consumers engage with AM/FM radio, podcasts, and other audio content, is not moving forward with its previously announced purchase of an AM/FM radio streaming app.
Auddia shared today that it has withdrawn a S-1 filing with the Securities and Exchange Commission designed to secure financing for the acquisition of Radio FM.
Explaining the company’s decision, Auddia Executive Chairman Jeff Thramann said, “We have been pursuing an aggressive AM/FM streaming app acquisition strategy by negotiating with three targets simultaneously. 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.”
The company expects to continue to advance discussions with the remaining two targets under letters of intent and reiterated that a purchase agreement for “target #2” is expected to be signed before the end of June 2024.
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.”
Auddia plans to “reengage” with Radio FM in the future should the opportunity arise.
Auddia gained industry attention in 2023 for its subscription-based Faidr app, a paid offering that deletes over-the-air commercials with music and other exclusive programming.
At present, Auddia trades on one Nasdaq market with shares valued at just 3 cents (AUUDW), and its more commonly traded shares priced at $3.38 as of 12:44pm Eastern on Thursday. Trading as “AUUD,” Auddia stock has seen significant share erosion since a June 2021 burst sending prices as high as $185.50. On February 27, it moved ahead with a reverse stock split at a 1-for-25 ratio, designed to assist Auddia in meeting Nasdaq continued listing standards.
