Algorhythm Holdings Exchanges Series A Preferred Stock for Debt
News related to:Algorhythm Holdings, Inc · 2 min read
Fort Lauderdale, FL, Sept. 23, 2026 /CourierPR/ -- Algorhythm Holdings, Inc., a diversified holding company with operations in renewable power infrastructure and AI-enabled logistics technology, has taken a significant step to enhance its financial flexibility. The company has retired all outstanding shares of its Series A Preferred Stock, exchanging them for approximately $4 million in debt. This move was part of a broader strategy to reduce the company's overall cost of capital and pursue lower-cost financing alternatives.
According to Andrew Thompson, CEO of Algorhythm Holdings, the restructuring is a critical step in providing the company with the necessary financial flexibility to execute its business plan.
Algorhythm Holdings operates two primary businesses: Azure Energy and SemiCab. Azure Energy, launched in 2025, is a leading developer of renewable biomass power generation infrastructure. The company has designed and built 72 facilities generating 17.5GW of renewable power to date. Through multiple power plant projects currently under construction, Azure Energy has secured equity participation rights valued at over $220 million in net present value.
SemiCab, an AI-enabled logistics software provider, has been operational since 2020. The company has enabled major retailers, brands, and transportation providers to address common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks.
The Series A Preferred Stock contained restrictive covenants that, among other things, limited the company's ability to raise additional equity, debt, and other forms of capital and engage in a variety of corporate transactions without the holder's consent. As a result of the exchange, these restrictions have been eliminated, providing Algorhythm with greater flexibility to evaluate refinancing, repayment, and alternative financing opportunities.
The company intends to use this increased flexibility to pursue opportunities to reduce its overall cost of capital and, where economically advantageous, refinance or repay existing equity-linked obligations with cash flow or less dilutive sources of capital.
Azure Energy's contracted revenue and operating cash flow are expected to contribute to a stronger financial profile for the consolidated company.
The company's Annual Report on Form 10-K for the year ended December 31, 2025, provides additional details on its financial performance and strategic initiatives.