Algorhythm Completes Transformational $23 Million Acquisition of Leading Renewable Power Plant Developer Serving Fortune 500, AI Data Center and Advanced Manufacturing Clients

Algorhythm’s all-equity $23 million Azure Energy deal adds profitable biomass power projects, sizeable equity stakes and new leadership focused on AI-era power demand.

Rhea-AI Summary

Algorhythm Holdings (RIME) has completed a roughly $23 million asset acquisition of Charlotte-based renewable power plant developer Azure Energy, paid in common stock and a new preferred stock class that gains voting and conversion rights after shareholder approval.

Azure has more than $10 million in current contractual backlog and is generating positive, scaling EBITDA in 2026. It holds project equity interests in multiple U.S. power plants under construction with management-estimated net present value exceeding $220 million. The Azure team has participated in the design and construction of 72 power generation facilities totaling 17.5 GW of capacity, serving Fortune 500 clients, AI data centers and advanced manufacturers.

Azure’s biomass-based pyrolysis-to-power technology targets behind-the-meter, carbon-neutral power and potable water production. Co-founder Andrew Thompson becomes Algorhythm’s CEO and Chairman, and co-founder Kevin Tangen joins to lead engineering and technical teams.

Positive

• $23 million Azure Energy acquisition completed via asset purchase
• Azure has current contractual backlog exceeding $10 million
• Azure holds power-plant equity interests with NPV over $220 million
• Azure generating positive, scaling EBITDA in 2026
• Team track record of 72 plants totaling 17.5 GW capacity
• Access to Fortune 500, AI data center and advanced manufacturing customers

Negative

• Acquisition consideration is entirely in equity and convertible preferred, implying shareholder dilution
• New preferred stock gains voting and conversion rights only after future shareholder approval

Argus 15 min delay

-13.05% vs previous close $0.21 last price 5.5x rel. volume Open Argus

Details

Market reaction after Azure acquisition completion: RIME -13.05%

+7.3% Peak in 1 hr 4 min

$0.20 $0.28 Day Range

$3.56M Market Cap

Following this news, RIME has declined 13.05%, reflecting a significant negative market reaction. Argus tracked a peak move of +7.3% during the session. Our momentum scanner has triggered 32 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $0.21. Trading volume is exceptionally heavy at 5.5x the average, suggesting significant selling pressure.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

The prior -10.3% reaction followed Algorhythm’s Aug 25 review of an energy-infrastructure combinatio...

Analysis

The prior -10.3% reaction followed Algorhythm’s Aug 25 review of an energy-infrastructure combination; this release documented completion of that previously contemplated strategic shift through Azure.

Key Figures

Acquisition consideration: approximately $23 million Contractual backlog: over $10 million Project equity NPV: exceeding $220 million +2 more

Acquisition consideration

approximately $23 million

Azure asset purchase

Contractual backlog

over $10 million

Current Azure backlog

Project equity NPV

exceeding $220 million

Power plants under construction

Facilities designed and built

72 facilities

Team experience to date

Generating capacity

17.5 GW

Facilities designed and built to date

Key Terms

ebitda, net present value, asset purchase, preferred stock, +1 more

5 terms

ebitda financial

"Azure is Generating Positive EBITDA in 2026"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

net present value financial

"Management-Estimated Net Present Value Exceeding $220 Million"

Net present value is a way to measure the value of a future amount of money today. It considers how money available in the future is worth less than money now because of potential earning opportunities or inflation. Investors use it to decide whether an investment is worthwhile, aiming for projects with positive net present value, meaning they are expected to generate more value than they cost.

asset purchase financial

"The transaction was structured as an asset purchase"

An asset purchase is a business deal in which a buyer acquires specific items owned by a company—such as equipment, property, contracts, or intellectual property—rather than buying the company’s shares. For investors it matters because an asset purchase lets buyers pick what they want and avoid unwanted debts or obligations, which changes valuation, tax outcomes and how quickly the purchased pieces can be used or sold, similar to buying furniture and appliances from a house instead of buying the whole house and its mortgage.

preferred stock financial

"shares of a new class of preferred stock"

Preferred stock is a type of ownership in a company that typically offers investors higher and more consistent dividend payments than common stock. Unlike regular shares, preferred stock usually doesn’t come with voting rights but provides a priority claim on the company’s assets and profits, making it a more stable and predictable investment option. This makes preferred stock attractive to those seeking steady income with lower risk.

dispatchable power technical

"reliable, dispatchable power capable of operating"

Dispatchable power is electricity from sources that can be turned on, off, or adjusted on demand to match what the grid needs, like a stove you can raise or lower instantly compared with a windmill that only works when wind blows. Investors care because these sources provide reliable, predictable supply and revenue when demand spikes or intermittent renewables falter, reducing operational risk and often qualifying for capacity payments or premium pricing.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

• Acquired Company Has Over $10 Million in Current Contractual Backlog. 
  
  
• Azure is Generating Positive EBITDA in 2026, and This is Expected to Scale Significantly Over the Next 12 Months.
  
  
• Azure Holds Project Equity Interests in Multiple Power Plants Under Construction with Management-Estimated Net Present Value Exceeding $220 Million.
  
  
• Experienced Team Has Participated in the Design and Construction of 72 Power Generation Facilities Representing 17.5 GW of Generating Capacity.
  

Fort Lauderdale, FL, Sept. 15, 2026 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (the “Company”) (NASDAQ: RIME) – a leading business holding company, today announced that it has completed the acquisition of Azure Energy, LLC (“Azure”), a renewable power plant developer based in Charlotte, NC.

The transaction was structured as an asset purchase with total consideration of approximately $23 million, consisting of shares of the Company’s common stock and shares of a new class of preferred stock that will obtain voting rights and become convertible into shares of common stock after shareholder approval for the transaction is obtained.

The acquisition represents a transformational strategic transaction for the Company, establishing the Company in the rapidly expanding U.S. power infrastructure market as artificial intelligence, hyperscale computing and advanced manufacturing drive substantial new demand for reliable power generation.

Azure Energy – Experienced Team, Scaling Contract Revenue & EBITDA, Significant Project Level Equity Stakes

Azure is a leading developer of renewable biomass power generation infrastructure. It was founded in 2025 by Andrew Thompson and Kevin Tangen. Its team consists of some of the most experienced biomass power plant experts in the US today. Collectively, the team has designed and built 72 facilities generating 17.5GW of renewable power to date. Azure Energy has already secured equity participation valued at over $220 million in net present value through multiple power plants under construction in the US today. Azure Energy has significant fee-income consulting revenues that will be receivable under multi-year contracts, and is generating scaling, positive EBITDA.

Azure's current engagements include Fortune 500 companies converting or redeveloping legacy fossil-fuel power facilities with renewable solutions, new AI data center facilities in Tennessee and Louisiana, and advanced manufacturing facilities. Its growing pipeline includes potential data center projects in Oregon, Wyoming and across the southeastern United States, additional Fortune 500 prospects, and government-supported renewable energy projects.

Positioned at the Intersection of Sustainable Power Infrastructure and AI Data Center Growth

The rapid expansion of artificial intelligence and hyperscale computing is creating unprecedented demand for new power infrastructure, and Azure is uniquely positioned to capitalize on this window of opportunity. McKinsey estimates that nearly $7 trillion of cumulative global data center investment will be required by 2030, including approximately $1.3 trillion supporting the power generation and transmission, cooling and electrical infrastructure required for AI data centers.

At the same time, the substantial electricity and water requirements of large-scale data centers are generating increased scrutiny from communities and governments concerned about grid capacity, utility rates, water resources and environmental impact. These concerns are increasingly affecting where and how new data centers can be developed.

Azure's pyrolysis-to-power (“P2P”) technology is designed to address these challenges. Its power plants utilize renewable biomass and waste streams to produce reliable, dispatchable power capable of operating independently from traditional electric grid capacity. This behind-the-meter approach can provide data center developers with dedicated power generation while reducing dependence on constrained local utility infrastructure.

Azure's P2P technology is also designed around sustainability, providing a carbon-neutral power generation pathway while generating millions of gallons of fresh, potable water per day as a byproduct of the power generation process. The Company believes this combination of dedicated power, renewable biomass utilization and internally generated water can substantially reduce the demands a data center places on local power and water resources.

New Members of Executive Team

As part of the transaction, Andrew Thompson, co-founder and Managing Partner of Azure Energy, was appointed Chief Executive Officer and Chairman of the Board of Algorhythm Holdings. Mr. Thompson is a serial entrepreneur with more than 20 years of finance, project finance and energy project development experience. Kevin Tangen, co-founder of Azure Energy, also joined the Company and will drive the engineering and technical teams within the Company. Mr. Tangen has over 40 years of deep technical expertise in the renewable power generation space and is considered a leading expert on Azure’s pyrolysis to power technology

“We are excited to complete this transaction and begin the next phase of building Azure as part of Algorhythm,” commented Andrew Thompson, Managing Partner of Azure Energy. “Our team has spent many years developing and constructing complex power generation projects. We are leaders in the design, construction and supervision of innovative biomass power plants. Our work to date speaks for itself; 72 power plants, 17.5GW delivered to a wide range of satisfied power consumers across the US.”

“Power availability is rapidly becoming one of the defining infrastructure challenges of the AI era,” continued Thompson. “Azure has been built around addressing that challenge with scalable, dispatchable and sustainable power solutions designed to meet the unique requirements of large-scale data centers and other power-intensive customers.”

“Today, as part of Algorythm, we can significantly scale our business, selectively expanding our role in projects where a stronger balance sheet has been the only limiting factor to increasing our revenue opportunity 10x or more. Algorhythm will enable us to take on more projects, accelerate our revenue growth, attract more top-tier talent, and propel us forward, helping us unlock our true value potential. We look forward to providing additional commercial milestone updates in the coming months as we execute on our business model in 2026 and beyond,” concluded Mr. Thompson.

About Algorhythm Holdings

Algorhythm Holdings, Inc. is a leading holding company that owns and operates Azure Energy and SemiCab.

Azure Energy is a leading developer of renewable biomass power generation infrastructure. Azure's uses its pyrolysis-to-power (“P2P”) technology to design power plants that utilize renewable biomass and waste streams to produce reliable, dispatchable power capable of operating independently from traditional electric grid capacity. Azure's P2P technology is also designed around sustainability, providing a carbon-neutral power generation pathway while generating millions of gallons of fresh, potable water per day as a byproduct of the power generation process. Azure has designed and built 72 facilities generating 17.5GW of renewable power to date. For additional information, please go to: https://azure-energy.co/

SemiCab is an AI technology company that has enabled major retailers, brands and transportation providers to address common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. For additional information, please go to: http://www.semicab.com.

Investor Relations Contact
Brendan Hopkins
407-645-5295
investors@algoholdings.com
www.algoholdings.com

Media Contact
FischTank PR
Algorhythm@fischtankpr.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm’s reports to the SEC, including, without limitation Algorhythm’s Annual Report on Form 10-K for the year ended December 31, 2025. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How was the Azure Energy acquisition by Algorhythm structured and paid for?

The transaction was structured as an asset purchase with total consideration of approximately $23 million. Payment consists of shares of Algorhythm common stock and shares of a new class of preferred stock that will obtain voting rights and become convertible into common stock after shareholder approval for the transaction is obtained.

What types of projects and customers are currently in Azure Energy’s pipeline?

Azure’s current engagements include Fortune 500 companies converting or redeveloping legacy fossil-fuel plants with renewable solutions, new AI data center facilities in Tennessee and Louisiana, and advanced manufacturing facilities. Its pipeline also includes potential data center projects in Oregon, Wyoming and the southeastern U.S., additional Fortune 500 prospects, and government-supported renewable energy projects.

What is distinctive about Azure Energy’s pyrolysis-to-power (P2P) technology?

Azure’s P2P plants use renewable biomass and waste streams to produce reliable, dispatchable power that can operate independently from the traditional electric grid, providing behind-the-meter supply for power-intensive customers. The technology is designed around carbon-neutral power generation and is also intended to generate millions of gallons of fresh, potable water per day as a byproduct, which the company believes can reduce local power and water resource demands from large data centers.

What leadership changes at Algorhythm accompany the Azure acquisition?

As part of the transaction, Andrew Thompson, co-founder and Managing Partner of Azure Energy, was appointed Chief Executive Officer and Chairman of the Board of Algorhythm Holdings. Co-founder Kevin Tangen also joined Algorhythm and will lead the company’s engineering and technical teams, bringing more than 40 years of renewable power generation expertise.

What operating track record does the Azure Energy team bring to Algorhythm?

The Azure team is described as among the most experienced biomass power plant specialists in the U.S. Collectively, they have participated in the design and construction of 72 power generation facilities representing 17.5 GW of generating capacity, serving a wide range of power consumers across the United States.

How does Azure Energy generate revenue today?

Azure generates fee-income consulting revenues under multi-year contracts and is producing scaling, positive EBITDA in 2026. It also has equity participation in multiple power plants under construction, which management estimates have a net present value of more than $220 million.