Singing Machine Announces Corporate Rebrand to Algorhythm Holdings, Inc.
September 05 2024 - 7:00AM
The Singing Machine Company, Inc. (“Singing Machine”) (NASDAQ:
MICS) – the worldwide leader in consumer karaoke
products, recently announced it has successfully completed the
acquisition of SemiCab, Inc. (“SemiCab”), a leading artificial
intelligence technology company in the global logistics space. As
part of this transaction, the Company announced an expanded
business model, centered on making investments in AI driven
technology companies focused on solving challenges for some of the
largest global industry verticals.
Today, the Company unveiled its new holding
company name, Algorhythm Holdings, Inc. (“Algorhythm”). Under this
new holding company structure, the Company will continue to
leverage the strong brand recognition of the Singing Machine for
its legacy consumer electronics product portfolio, and SemiCab for
its scaling AI logistics business. As part of this rebrand, the
Company will also change its ticker symbol, and is expected to
trade on Nasdaq under the symbol “RIME.” This
change is expected to become effective at the opening of trading on
September 9, 2024. This process will also involve repositioning the
legacy karaoke business into a wholly-owned subsidiary, separate
and distinct from the publicly traded parent company. This legal
process is expected to provide great transactional flexibility for
the holding company to evaluate attracting minority interest
partners for the consumer electronics business while minimizing
future dilution, as well as other possible corporate options for
this business unit.
Gary Atkinson, CEO of Algorhythm, provided
insight into the new brand, “We are excited to unveil our new
holding company structure, giving us greater flexibility for each
business unit to leverage their own brands for their respective
markets, clients, and stakeholders. The new structure broadens our
growth horizons and is designed to hopefully unlock future value by
decoupling the legacy karaoke business from the publicly traded
parent company.”
“In the context of our expanding business model,
the rebrand to Algorhythm is a direct play on both our technology
and music-centric subsidiaries. We believe this rebrand provides us
with a balanced mix of cohesion and flexibility to flex the right
brand at the right time to the right end audience as needed,”
concluded Mr. Atkinson.
About SemiCab
SemiCab is a cloud-based Collaborative
Transportation Platform built to achieve the scalability required
to predict and optimize millions of loads and hundreds of thousands
of trucks. To orchestrate collaboration across manufacturers,
retailers, distributors, and their carriers, SemiCab uses real-time
data from API-based load tendering and pre-built integrations with
TMS and ELD partners. To build fully loaded round trips, SemiCab
uses AI/ML predictions and advanced predictive optimization models.
On the SemiCab platform, shippers pay less and carriers make more
while not having to change a thing.
Since 2020, SemiCab has enabled major retailers,
brands and transportation providers to address these common
supply-chain problems globally. SemiCab's Orchestrated
Collaboration™ AI model has proven to increase transportation
capacity, improve asset utilization, reduce empty miles, lower
logistics costs, and provide visibility into the entire
transportation network. Models show the technology has the
capability of saving shippers tens of billions of dollars annually
through optimization. Further, SemiCab’s technology also has the
potential to play a key role in the improved sustainability model
globally. Based on its proven ability to improve truck utilization
rates from 65% to over 90%, this results in a dramatic reduction in
the carbon footprint of the industry. The optimization of existing
truck utilization can add approximately 30% more trucking capacity
without adding more trucks, drivers or driven miles which addresses
common problems plaguing the industry like severe driver shortage
and road congestion. Trucking optimization could also eliminate
approximately 25% of CO2 emissions attributable to road
freight.
For additional information regarding SemiCab:
http://www.semicab.com
About Singing Machine
The Singing Machine Company, Inc. (NASDAQ: MICS)
is the worldwide leader in consumer karaoke products. Based in Fort
Lauderdale, Florida, and founded over forty years ago, the Company
designs and distributes the industry's widest assortment of at-home
and in-car karaoke entertainment products. Their portfolio is
marketed under both proprietary brands and popular licenses,
including Carpool Karaoke and Sesame Street. Singing Machine
products incorporate the latest technology and provide access to
over 100,000 songs for streaming through its mobile app and select
WiFi-capable products and is also developing the world’s first
globally available, fully integrated in-car karaoke system. The
Company also has a new philanthropic initiative, CARE-eoke by
Singing Machine, to focus on the social impact of karaoke for
children and adults of all ages who would benefit from singing.
Their products are sold in over 25,000 locations worldwide,
including Amazon, Costco, Sam’s Club, Target, and Walmart. To learn
more, go to www.singingmachine.com.
Investor Relations
Contact:investors@singingmachine.comwww.singingmachine.comwww.singingmachine.com/investors
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 the Company's reports to the SEC, including,
without limitation the Company’s Transition Report on Form 10-KT
for the transition period from April 1, 2023 to December 31, 2023,
the Company’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2024.
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.
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