SoundHound AI Shares Drop After $150M Stock Sale Announcement in 2025
Explore why SoundHound AI's stock fell following its recent $150 million stock sale plan aimed at boosting corporate capital and reducing debt.
With over 25 years of expertise, Bill McColl is a seasoned senior producer and writer in TV, radio, and digital media, leading teams to deliver impactful news coverage on top stories.
Key Highlights
- SoundHound AI revealed a $150 million stock sale agreement on Wednesday, allocating the initial $55 million for general corporate needs and potential strategic acquisitions.
- Any proceeds beyond $55 million will be directed toward debt repayment to strengthen the company's financial health.
- Following Nvidia's investment announcement earlier this year, SoundHound's shares surged in March but have since declined, including a 9% drop on Wednesday.
SoundHound AI's stock price experienced a decline on Wednesday after announcing a substantial stock offering to raise up to $150 million. The company has secured agreements with five financial firms to facilitate this sale over time.
The first $55 million raised will fund general corporate operations and working capital, with opportunities to invest in or acquire complementary businesses, assets, or technologies. Any additional funds will help reduce existing debt.
Earlier in 2024, SoundHound's shares skyrocketed over 300% following Nvidia's stake acquisition announcement. Despite this, recent concerns about financial stability have caused a steady share price decline.
As of 11:30 a.m. ET Wednesday, shares dropped 9% to $4.40 but remain more than double their value at the start of 2024.
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