A surge in Auddia Inc (NASDAQ: AUUD) stock is witnessed today, marking a 12.21% increase, reaching $3.47 per share in the current market session as of the last check. This uptick aligns with significant developments concerning an impending acquisition move.
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Auddia (AUUD) recently decided to withdraw the S-1, originally filed to procure financing aimed at acquiring Radio FM, a prominent AM/FM radio streaming application. Employing an assertive strategy, Auddia had been engaging in negotiations with three potential targets concurrently for the acquisition of AM/FM streaming apps.
However, prevailing market conditions have rendered the primary acquisition target for AUUD unattainable. Consequently, in an effort to optimize shareholder value, the company opted to retract the existing S-1, initially intended for the Radio FM acquisition. Moving forward, Auddia anticipates furthering discussions with the remaining two targets under Letter of Intent (LOI).
It is reiterated that the purchase agreement for the second target is anticipated to be finalized by Q2. Recognizing the need for a more capital-efficient approach, AUUD has determined that acquiring targets #2 and #3 sequentially would be a prudent course of action. These targets entail considerably lower cash requirements upon closure.
Upon successful integration and the demonstration of synergies, Auddia will be better positioned to pursue larger opportunities within its domain. Both parties have mutually agreed to terminate the current purchase agreement, with plans for potential reengagement with Radio FM in the future, should circumstances permit.
Continuing its efforts, Auddia is actively engaged in discussions with the remaining acquisition targets under LOI. Due diligence pertaining to target #2 has been completed, and negotiations for the purchase agreement are in the final stages. A definitive agreement for target #2 is expected to be signed by the conclusion of Q1 2024.
In an effort to maintain flexibility regarding timelines, the Company has initiated discussions with target #3 to secure an option for extending the exclusive right to acquire until Q3 2024, if deemed necessary. Auddia anticipates finalizing a definitive purchase agreement for target #3 by Q3 2024.
