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In an unexpected turn of events concerning Auddia’s agreement to purchase Radio FM, the AI platform for audio identification, classification and related technologies, has announced the withdrawal of the S-1 on file to secure the financing to acquire the AM/FM radio streaming app. The S-1 is the initial registration form for new securities the Securities and Exchange Commission requires for public companies based in the United States.
“We have been pursuing an aggressive AM/FM streaming app acquisition strategy by negotiating with three targets simultaneously,” said Jeff Thramann, executive chairman of Auddia. “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 says it will advance discussions with the remaining two targets under a letter of intent and reiterates that it expects to sign a purchase agreement for the second target in Q2.
John Mahoney, CFO of Auddia, 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 the second target followed by the third, 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.”
Both parties have agreed to terminate the current purchase agreement and Auddia says it will reengage with Radio FM in the future should the opportunity arise.
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