Auddia Inc., a company developing AI technology for audio content engagement, will implement a 1-for-7.7 reverse stock split of its common stock effective before market open on April 1, 2026. The action, approved by stockholders in May 2025 and finalized by the Board of Directors, is designed to help the company meet Nasdaq's continued listing standards by increasing its per-share trading price.
The company stated that the primary objective of the reverse split is to raise its stock price above the $1.00 minimum bid price required by Nasdaq's listing rules. Auddia filed an amendment to its Certificate of Incorporation with the Delaware Secretary of State, effective March 31, 2026. As a result, every 7.7 existing shares will be combined into one share. The company's issued and outstanding common shares are expected to decrease from approximately 3.9 million to about 500,000.
This corporate action is significant for investors and the market as it represents a strategic move to avoid delisting from a major exchange. Delisting can severely limit a stock's liquidity, reduce investor access, and damage corporate credibility. For Auddia, maintaining its Nasdaq listing is crucial for continued visibility among institutional investors and for upholding the perception of stability as it develops its faidr audio superapp platform. The company's technologies aim to reinvent consumer engagement with AM/FM radio and podcasts.
The reverse split will apply uniformly to all outstanding equity instruments. The number of shares underlying the company's preferred stock, warrants, stock options, and restricted stock units will be adjusted proportionally, as will their respective conversion or exercise prices. No fractional shares will be issued; instead, fractional shares will be rounded up to the nearest whole share at the participant level through the Depository Trust Company (DTC). Stockholders with shares in brokerage accounts will see automatic adjustments, while those holding physical certificates will receive instructions from Auddia's transfer agent, Vstock Transfer.
The shares will begin trading on a split-adjusted basis on April 1 under a new CUSIP number (05072K 404). The company's forward-looking statements caution that outcomes are subject to risks and uncertainties detailed in its SEC filings. Investors can monitor further developments through the company's newsroom at https://tinyurl.com/auudnewsroom. The move underscores the financial pressures facing smaller publicly traded technology firms and highlights the importance of exchange listing requirements in corporate financial strategy.
