Corporate ActionJul 24, 2026, 05:16 PM
Algorhythm Holdings Settles $1.93M Debt, Amends Exec Comp
AI Summary
Algorhythm Holdings, Inc. entered into a settlement agreement with Continuation Capital, Inc. to resolve $1.93 million in liabilities by issuing up to 5 million common shares. This issuance is exempt from registration requirements and is designed to allow Continuation Capital to generate proceeds equal to 120% of the claim amount. Additionally, the company amended employment agreements for CEO Gary Atkinson and CFO Alex Andre, harmonizing change of control treatment and detailing new compensation structures, including base salaries, annual bonuses, and significant equity awards.
Key Highlights
- Settled $1,928,014 in outstanding liabilities with Continuation Capital, Inc.
- Agreed to issue up to 5,000,000 common shares to Continuation Capital, Inc. for 120% of claim amount.
- CEO Gary Atkinson's amended agreement sets base salary at $360,000 with up to 50% annual bonus.
- CFO Alex Andre's amended agreement sets base salary at $275,000, increasing to $300,000.
- Executives to receive a bonus equal to Base Salary + Annual Bonus upon a Change of Control.
- CEO granted stock option for approximately 5% of fully diluted shares, vesting over 4 years.
- CFO granted restricted stock and stock option for approximately 1% each of fully diluted shares.
Price Impact
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