Auddia offers around 6 million shares of common stock

BOULDER – Auddia Inc. (Nasdaq: AUDD), a Boulder-based audio and podcast technology company, has filed with the Securities and Exchange Commission to offer up to 6,819,732 shares of its common stock to the public.

The company hopes to raise $6 million in gross proceeds through the offering.

Auddia also is offering the opportunity to buy units consisting of one pre-funded warrant in lieu of one share of common stock and one common warrant.

According to its submission to the SEC, “the shares of our common stock and pre-funded warrants, if any, and the accompanying common warrants can only be purchased together in this offering but will be issued separately and will be immediately separable upon issuance.

“The final public offering price will be determined through negotiation between us and investors based upon a number of factors, including our history and our prospects, the industry in which we operate, our past and present operating results, the previous experience of our executive officers and the general condition of the securities markets at the time of this offering.”

There is no established public trading market for pre-funded warrants or common warrants, and the company doesn’t expect such a market to develop, according to its SEC submission. “Without an active trading market, the liquidity of the pre-funded warrants and common warrants will be limited,” the document says. “In addition, we do not intend to list the pre-funded warrants or the common warrants on the Nasdaq Capital Market, any other national securities exchange or any other trading system.”

Auddia has developed a proprietary AI platform for audio and technologies for podcasts and is leveraging those technologies in what it calls a “superapp” called “faidr.” The app lets consumers listen to any AM or FM radio station with no commercials while personalizing the listening experience through skips and the insertion of on-demand content, including popular and new music, news and weather.

The company announced in February that it had hired Tim Ackerman as its new chief financial officer, replacing Brian Hoff, who resigned from the CFO position in November.

Last August, Auddia avoided delisting from the stock exchange after regaining compliance with the bid-price rule, according to documents filed with the SEC. It had received a notification from Nasdaq on July 14 that it was in violation of the bid-price rule because its share price traded below $1 per share for 30 consecutive days.

Source: BizWest

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