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Market Analysis
SoundHound AI Stock Falls 8%+ After $150M Equity Distribution Agreement
SoundHound AI, Inc. (NASDAQ: SOUN) entered into a $150 million equity distribution agreement that allows the company to sell its Class A common stock.
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SoundHound AI, Inc. (NASDAQ: SOUN) announced today that it has entered into an Equity Distribution Agreement with several prominent financial institutions, including Citigroup Global Markets Inc., Barclays Capital Inc., Wedbush Securities Inc., Northland Securities, Inc., and Ladenburg Thalmann & Co. Inc.
These firms will serve as sales managers and/or principals for the company’s new at-the-market equity program authorized for selling up to $150 million of its shares.
SoundHound AI May Sell Up to $150M Worth of its Class A Common Stock
Under the terms of the agreement, SoundHound AI may offer and sell up to $150 million of its Class A common stock. The sales managers will receive a commission of 2.5% of the gross sales price of shares sold, and the company will reimburse them for specified expenses related to the agreement.
Shares may be sold through various methods, including negotiated transactions, block trades, or “at the market” offerings directly on the Nasdaq Global Market or through market makers.
The offering is being conducted under the company’s Form S-3 Registration Statement, which was filed and became effective on August 4, 2023, along with related prospectus supplements.
SoundHound AI Stock Drops Over 8%
SoundHound AI’s stock, traded under the symbol SOUN on the Nasdaq Global Market, has experienced significant volatility in recent trading sessions.
As of the latest report, the stock was trading at $4.44, marking a decrease of 8.45% from the previous close of $4.85. The stock has been fluctuating within a day’s range of $4.19 to $4.53, with a current trading volume of 15,263,553 shares, compared to an average volume of 62,738,296.
Over the past 52 weeks, SoundHound AI’s stock has varied between $1.49 and $10.25, reflecting its growth potential and the market’s interest in AI-driven solutions.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
