Auddia Inc., a proprietary AI platform for audio identification and classification, announced it will complete a 1-for-7.7 reverse stock split of its common stock effective before market open on April 1, 2026. The company's stockholders approved an amendment to the Certificate of Incorporation on May 2, 2025, authorizing the reverse split with the exact ratio to be determined by the Board of Directors. The Board subsequently resolved to set the ratio at 1-for-7.7, and the company filed the amendment with the Delaware Secretary of State effective March 31, 2026.
The primary motivation for the reverse stock split is to help Auddia meet Nasdaq's continued listing standards, specifically to increase the per share price and bid price above the $1.00 threshold required by Nasdaq's Minimum Bid Price Rule. The company believes this action will assist in maintaining its common stock listing and trading on Nasdaq. Following the split, shares will be assigned a new CUSIP number (05072K 404) and are expected to begin trading on a split-adjusted basis on April 1, 2026.
The reverse stock split will reduce the company's issued and outstanding common shares from approximately 3.9 million pre-split shares to approximately 500,000 post-split shares. The split will not change the authorized number of shares, and no fractional shares will be issued. Instead, any fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share at the participant level, with the company utilizing DTC for this process rather than rounding at the beneficial level.
The reverse stock split will apply proportionately to all of Auddia's outstanding securities, including preferred stock, warrants, stock options, and restricted stock units. The number of shares into which these securities are convertible or exercisable will be adjusted accordingly, as will the conversion or exercise prices in accordance with the terms of those securities and the company's equity incentive plans. Stockholders holding shares through brokerage accounts will have their positions automatically adjusted, while those holding physical certificates will receive instructions from Auddia's transfer agent, Vstock Transfer.
For more information about Auddia and its audio superapp faidr, which offers subscription-based, ad-free listening on AM/FM radio stations and podcasts with interactive digital feeds, visit https://www.auddia.com. Additional news and updates relating to Auddia are available through the company's newsroom at https://tinyurl.com/auudnewsroom.
