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Stingray Group Inc. (NASDAQ:RIME) recently disclosed a sale of shares in Algorhythm Holdings, Inc., as reported in a recent SEC filing. The transaction, dated February 18, 2025, involved the sale of 5,494 shares at a price of $0.26 per share, amounting to a total of $1,428. The company’s stock, currently trading at $2.49, has experienced significant pressure, falling nearly 98% over the past year according to InvestingPro data.
The sale was conducted under a Stock Repurchase Agreement, which was initially entered into on December 3, 2024. In exchange for the shares, Algorhythm Holdings issued a promissory note to Stingray Group. Following this transaction, Stingray Group retains direct ownership of 1,611 common shares and 1,111 warrants to purchase additional shares. With a market capitalization of just $6.45 million and a weak financial health score, InvestingPro analysis indicates the company is currently burning through cash with short-term obligations exceeding liquid assets.
Eric Boyko, a former 10% owner and the President and CEO of Stingray Group, was also involved in the filing. As of May 31, 2024, Boyko controlled approximately 70.78% of Stingray’s voting power, either directly or indirectly. Despite the transaction, Boyko disclaims beneficial ownership of the securities, except for his pecuniary interest in them. Investors should note that the company’s next earnings report is scheduled for February 26, 2025. InvestingPro subscribers have access to 16 additional key insights and a comprehensive Pro Research Report for deeper analysis.
In other recent news, Algorhythm Holdings, Inc. has announced a significant corporate action involving a 1-for-200 reverse stock split. This move, confirmed by the company’s CEO Gary Atkinson, will reduce the number of outstanding shares from approximately 476 million to about 2.38 million, excluding rounding adjustments. Additionally, the company has increased its authorized shares from 100 million to 800 million, a decision approved by shareholders during the recent annual meeting. This strategic step is intended to adjust the number of shares available and outstanding, although the exact market impact remains undisclosed.
Algorhythm Holdings is also facing potential delisting from the Nasdaq Stock Market due to its stock price falling below the minimum bid requirement. The company plans to request a hearing before the Nasdaq Hearings Panel to delay any delisting actions. In a separate development, Algorhythm has announced a $2 million registered direct offering of its common stock, with Univest Securities, LLC serving as the exclusive placement agent. The offering is expected to close on December 18, 2024, pending customary conditions. These recent developments highlight Algorhythm Holdings’ efforts to navigate financial challenges and strategic corporate actions.
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