Repayment Represents an Immediate 20% Reduction in Convertible Debt Balances,
Company Intends to Retire or Refinance All Convertible Securities
Fort Lauderdale, FL, Nov. 12, 2026 (GLOBE NEWSWIRE) — Algorhythm Holdings, Inc. (the “Company”) (NASDAQ: RIME), a diversified holding company and owner of Azure Energy (“Azure”), a strategic advisor to renewable power plant developers, and SemiCab Holdings, an AI-enabled logistics provider, today announced it has repaid approximately $2.0 million of existing senior, secured convertible debt. The repayment was proposed and agreed to by the Company as part of a broader plan to strengthen the balance sheet, attract long-term shareholders, and enhance shareholder value.
Following its September 15, 2026, acquisition of Azure Energy, the Company has undertaken a review of its operating expenses, financial obligations, and capital allocation priorities. As part of this process, management has implemented cost reductions among the different business units and is focused on delevering, eliminating any convertible debt and improving operating cash flow through existing and expected new business opportunities.
“This voluntary prepayment represents the first meaningful step towards strengthening our balance sheet,” commented Greg Smith, CEO of Algorhythm. “This paydown reduces our convertible debt by an immediate 20%. We intend to take further action in the near term to bring this balance down further in a constructive manner that we believe will significantly improve shareholder value.”
“We brought Azure Energy into the Algorhythm holding company with the intent to build a strong, renewable power generation business that generates scalable revenues, cash flows, and lasting intrinsic value. To accelerate this plan, we are taking the necessary steps to curtail dilution, delever, and strengthen our balance sheet. Today is the first step towards completing this process,” concluded Mr. Smith.
About Algorhythm Holdings
Algorhythm Holdings, Inc. is a holding Company, with two primary assets, Azure Energy and SemiCab Holdings. Azure Energy provides strategic and technical advisory for renewable biomass power generation infrastructure. For additional information, please go to: http://www.azure-energy.co.
Algorhythm Holdings, Inc. also owns and operates SemiCab, an AI-enabled logistics software provider. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address common supply-chain problems globally. With SemiCab’s AI platform, shippers pay less and carriers make more without having to change a thing. For additional information, please go to: http://www.semicab.com.
Investor Relations Contact
Brendan Hopkins
407-645-5295
investors@algoholdings.com
www.algoholdings.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as “expects,” “anticipates,” “believes,” “will,” “will likely result,” “will continue,” “plans to,” “potential,” “promising,” and similar expressions. These statements are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm’s reports to the SEC, including, without limitation Algorhythm’s Annual Report on Form 10-K for the year ended December 31, 2025. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise.
