SoundHound AI to Acquire Allset Company

TL;DR

SoundHound AI is buying Allset Company to boost its restaurant tech game.

AI Summary

SoundHound AI, Inc. announced on June 24, 2024, that it has entered into a definitive agreement to acquire Allset Company. The acquisition is expected to close in the third quarter of 2024, subject to customary closing conditions. This strategic move aims to enhance SoundHound's capabilities in the restaurant technology sector.

Why It Matters

This acquisition could significantly expand SoundHound's market presence and product offerings within the restaurant technology space, potentially leading to increased revenue and competitive advantage.

Risk Assessment

Risk Level: medium — Acquisitions carry inherent risks, including integration challenges, potential overpayment, and failure to achieve expected synergies, which could impact SoundHound AI's financial performance.

Key Players & Entities

• SoundHound AI, Inc. (company) — Registrant
• Allset Company (company) — Acquisition Target
• June 24, 2024 (date) — Date of announcement
• third quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.0001 — ich registered Class A Common Stock, $0.0001 par value per share SOUN The Nasdaq
• $11.50 — A Common Stock at an exercise price of $11.50 per share, subject to adjustment SOUN
• $2.50 — Class A common stock has been at least $2.50 for 90 trading days during the 120 cons

Filing Documents

• ea0208602-8k_sound.htm (8-K) — 28KB
• 0001213900-24-056370.txt ( ) — 241KB
• soun-20240624.xsd (EX-101.SCH) — 4KB
• soun-20240624_def.xml (EX-101.DEF) — 26KB
• soun-20240624_lab.xml (EX-101.LAB) — 36KB
• soun-20240624_pre.xml (EX-101.PRE) — 25KB
• ea0208602-8k_sound_htm.xml (XML) — 6KB

01 Other Items

Item 8.01 Other Items. Reference is made to the Current Report on Form 8-K filed by SoundHound AI, Inc. (the "Company") on January 24, 2023 relating to the sale by the Company of an aggregate of 835,011 shares of Series A Convertible Preferred Stock, par value $0.0001 per share (the "Series A Preferred Stock"), which such shares of Series A Preferred Stock have the preferences, rights and limitations as set forth in the Certificate of Designations of Preferences, Rights and Limitations of the Series A Preferred Stock filed with the Secretary of State of the State of Delaware (the "Certificate of Designations"). On June 24, 2024, the Company provided notice to the remaining holders of Series A Preferred Stock (holding 58,574 shares of Series A Preferred Stock) that the conditions for a mandatory automatic conversion in accordance with the terms described in the Certificate of Designations had been met since the daily volume-weighted average closing price per share of the Company's Class A common stock has been at least $2.50 for 90 trading days during the 120 consecutive trading day period beginning on February 14, 2024. The aggregate number of shares of Class A common stock expected to be issued to the holders of Series A Preferred Stock is 2,134,631 shares. Following the automatic mandatory conversion of the Series A Preferred Stock, there will be no shares of Series A Preferred Stock outstanding. 1 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: June 27, 2024 SoundHound AI, Inc. /s/ Keyvan Mohajer Name: Keyvan Mohajer Title: Chief Executive Officer 2

View Full Filing

View this 8-K filing on SEC EDGAR