Algorhythm Terminates Highly-Dilutive $1.4 Million Financing
The termination is expected to avoid more than 8 million additional common shares that the financing would have required.
Rhea-AI Summary
Algorhythm Holdings (RIME) announced on September 24, 2026, that it voluntarily terminated a financing arrangement with Continuation Capital. Under the arrangement, Algorhythm would have needed to issue more than 8 million additional common shares to pay an approximately $1.4 million remaining balance. The company expects the termination to avoid those share issuances.
Algorhythm recently announced the retirement of all outstanding Series A preferred shares. It also acquired Azure Energy in a $23 million all-stock transaction. Algorhythm expects contracts acquired with Azure Energy to generate more than $10 million in revenue through the end of 2027.
Positive
- Termination expected to avoid more than 8 million new shares
Negative
- None.
Details
Market move: RIME -9.67% vs previous close. Dilutive financing termination
On Sep 24, the day this news came out, the latest delayed price for RIME is 9.67% below the previous close. Our momentum scanner has recorded 27 alerts for this stock so far that day. The latest delayed price is $0.17. Relative volume is exceptionally heavy at 91.3x the average.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
- Remaining financing balance
- $1.4 million
- Remaining balance cited in connection with the terminated financing
- Shares of dilution avoided
- More than 8 million shares
- Additional common shares that would have been required to pay the remaining balance
Historical Context
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Retired Series A preferred stock through debt exchange, removing covenants restricting financing and corporate transactions.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
section 3(a)(10) regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Termination of Financing is Expected to Avoid Dilution of More Than 8 Million Shares
Fort Lauderdale, FL, Sept. 24, 2026 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (the “Company”) (NASDAQ: RIME) – a diversified holding company that owns and operates Azure Energy, a renewable power plant developer, and SemiCab, a leading AI enabled logistics provider, today announced the voluntary termination of a previously disclosed settlement transaction completed under Section 3(a)(10) of the Securities Act with Continuation Capital, Inc. The Company would have been required to issue more than 8 million additional shares of common stock to pay off the remaining balance of approximately
“One of our highest priorities in the near term is to proactively strengthen our balance sheet, eliminate existing dilutive financings, and lower our cost of capital,” commented Andrew Thompson, CEO of Algorhythm Holdings. “In furtherance of this, we recently announced the retirement of all of our outstanding shares of Series A Preferred Stock. Terminating this
“We made a conscientious decision to partner with Algorhythm and leverage our value contribution for the benefit of all Algorhythm shareholders. We have compelling business opportunities in place and in the pipeline. We believe it is paramount to dramatically improve the financing solutions available to the Company in order to execute upon our long-term business plan,” concluded Mr. Thompson.
The Company recently acquired Azure Energy in an all-stock transaction valued at
About Algorhythm Holdings
Algorhythm Holdings, Inc. is a diversified holding Company that owns and operates two businesses -- Azure Energy and SemiCab.
Azure Energy is a leading developer of renewable biomass power generation infrastructure. Its team consists of some of the most experienced biomass power plant experts in the U.S. today. Collectively this team has designed and built 72 facilities generating 17.5GW of renewable power to date. The company was launched in 2025 and has already secured equity participation rights valued at over
SemiCab is an AI-enabled logistics software provider. Since 2020, SemiCab 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. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. SemiCab uses AI/ML predictions and advanced predictive optimization models to enable fully loaded round trips. With SemiCab’s AI platform, shippers pay less and carriers make more without having to change a thing. 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 the Company’s reports filed with the SEC, including the Company’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.
Why did Algorhythm Holdings terminate the Continuation Capital financing?
Algorhythm said eliminating existing dilutive financings and lowering its cost of capital are near-term priorities. Its chief executive described the termination as a step following the recently announced retirement of all outstanding Series A preferred shares.