Business
Auddia Announces Withdrawal of S-1 to Finance Acquisition of Radio FM
Continuing to pursue the two AM/FM streaming radio targets under LOI that are more favorably priced Expects to reengage with Radio FM after other targets are
About this update from Auddia Inc.
[{"type":"text","content":"Continuing to pursue the two AM/FM streaming radio targets under LOI that are more favorably priced\nExpects to reengage with Radio FM after other targets are acquired and conditions improve for a larger transaction\n \nBOULDER, CO - (NewMediaWire) - March 07, 2024 - Auddia Inc. (NASDAQ:AUUD) (NASDAQ:AUUDW) (\"Auddia\" or the \"Company\"), a proprietary AI platform for audio identification, classification and related technologies, reinventing how consumers engage with AM/FM radio, podcasts, and other audio content, today announced the withdrawal of the S-1 on file to secure the financing to acquire Radio FM, a leading AM/FM radio streaming app.\n\"We have been pursuing an aggressive AM/FM streaming app acquisition strategy by negotiating with three targets simultaneously,\" said Jeff Thramann, Executive Chairman of Auddia. \"It is now clear that market conditions are unfavorable for securing the largest acquisition as our first target. As such, to optimize shareholder value we are withdrawing the current S-1 on file that contemplates the Radio FM acquisition.\"\nThe Company expects to continue to advance discussions with the remaining two targets under LOI and reiterates that a purchase agreement for target #2 is expected to be signed in Q2.\nJohn Mahoney, CFO of Auddia, added, \"As we executed the purchase agreement for Radio FM and began to explore financing options in the current market, it became clear that a far more capital efficient process would be to proceed with acquiring target #2 followed by target #3, both of which require substantially less cash at closing. Once these targets are successfully integrated and synergies are demonstrated, we will be in a stronger position to pursue larger opportunities in our space.\"\nBoth parties have agreed to terminate the current purchase agreement and the Company plans to reengage with Radio FM in the future should the opportunity arise.\nAbout Auddia Inc.\nAuddia, through its proprietary AI platform for audio identification and classification and related technologies, is reinventing how consumers engage with AM/FM radio, podcasts, and other audio content. Auddia's flagship audio superapp, called faidr, brings two industry firsts to the audio-streaming landscape: subscription-based, ad-free listening on any AM/FM radio station and podcasts with interactive digital feeds that supp...