Corporate ActionJul 2, 2026, 04:38 PM
Algorhythm Holdings Issues Series A Preferred Stock for $3.5M Debt
AI Summary
Algorhythm Holdings, Inc. entered into an Exchange Agreement with Streeterville Capital, LLC to restructure a portion of its debt. The company partitioned $3.5 million from an existing Secured Pre-Paid Purchase #4 and exchanged it for 3,500 shares of newly created Series A Preferred Stock. This preferred stock, with a stated value of $1,150 per share, accrues a 9% preferred return and ranks senior to common stock, thereby modifying the rights of existing security holders.
Key Highlights
- Algorhythm Holdings entered an Exchange Agreement with Streeterville Capital, LLC on June 29, 2026.
- The company partitioned $3,500,000 from the $10,355,000 Secured Pre-Paid Purchase #4.
- The partitioned amount was exchanged for 3,500 shares of newly created Series A Preferred Stock.
- Each share of Series A Preferred Stock has a stated value of $1,150 and accrues a 9% preferred return.
- The outstanding balance of Secured Pre-Paid Purchase #4 was reduced to $7,202,371.69.
- Series A Preferred Stock is non-convertible, has limited voting rights, and ranks senior to common stock.
- The issuance of Series A Preferred Stock modifies the rights of common stockholders.
Price Impact
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