ClearOne updates partners on $3 million convertible note and ongoing review

ClearOne Inc. (NASDAQ:CLRO) informed its channel partners and customers Thursday about its previously announced $3 million convertible note offering and the company’s ongoing operational status as it continues to evaluate strategic alternatives.

According to a statement included in a regulatory filing with the Securities and Exchange Commission, the company sent a letter outlining these updates. The convertible note offering was originally announced on June 25. ClearOne said it remains operational while exploring possible strategic options for the business. With revenue declining 44% year-over-year and an EBITDA of -$8.38 million, the strategic review comes at a crucial time for the company.

A copy of the letter sent to partners and customers was furnished as an exhibit to the SEC filing. The filing did not provide additional financial details or specify the nature of the strategic alternatives under consideration.

ClearOne, based in Salt Lake City, Utah, manufactures telephone and telegraph apparatus. The company’s common stock trades on the NASDAQ Capital Market under the symbol CLRO.

This article is based on a press release statement contained in a recent SEC filing.

In other recent news, ClearOne, Inc. announced the implementation of a 1-for-15 reverse stock split of its common stock. This move, effective at 5:00 p.m. Eastern time on June 9, 2025, aims to elevate the per-share market price to meet Nasdaq’s minimum bid price requirement. The reverse stock split was approved by ClearOne’s stockholders and Board of Directors, and the necessary amendments have been filed. As a result, the number of issued and outstanding shares will decrease from approximately 26.0 million to about 1.7 million, while the authorized number of shares remains unchanged. Shareholders will receive one new share for every 15 shares held, with fractional shares rounded up. ClearOne’s transfer agent, Colonial Stock Transfer, will handle the exchange, ensuring a smooth transition for shareholders. The company’s ticker symbol "CLRO" will remain the same, though a new CUSIP number will be assigned. This strategic initiative is designed to ensure compliance with Nasdaq’s listing standards without altering stockholder percentage ownership.

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