Form 4: Milton C. Ault III Sells Shares of Algorhythm Holdings, Inc.

Milton C. Ault III, a former 10% owner of Algorhythm Holdings, Inc., sold a significant number of shares in open market transactions on October 4 and October 7, 2024.

Summary

• Milton C. Ault III, a former 10% owner of Algorhythm Holdings, Inc. (RIME), filed a Form 4 detailing changes in beneficial ownership.
• On October 4, 2024, Ault sold 46,900 shares of common stock at a volume weighted average price of $0.4728, with prices ranging from $0.45 to $0.49 per share.
• On October 7, 2024, Ault sold 365,100 shares of common stock at a volume weighted average price of $0.7320, with prices ranging from $0.695 to $0.77 per share.
• Following these transactions, Ault directly owns no shares, but indirectly owns 945,000 shares through Ault Lending, LLC.
• Ault Lending, LLC is a wholly-owned subsidiary of Hyperscale Data, Inc. (HSD).
• Mr. Ault, as the Executive Chairman of HSD, is deemed to have voting and investment power over the shares held by Ault Lending.

Sentiment

Score: 4

Explanation: The sentiment is neutral to slightly negative due to the sale of shares by a significant shareholder, which could create selling pressure. However, the indirect ownership remains substantial.

Negatives

• The sale of shares by a significant shareholder could be perceived negatively by the market.

Risks

• Continued selling pressure from Ault or Ault Lending, LLC could negatively impact the stock price.
• The market may interpret Ault's reduced direct ownership as a lack of confidence in the company's future prospects.

Industry Context

Sales of shares by significant shareholders are common and can be driven by various factors, including personal financial planning or portfolio diversification. The impact on the stock price depends on the size of the sale relative to the trading volume and the market's perception of the company's prospects.

Stakeholder Impact

• Shareholders may react to the news of the share sales.
• The sales could potentially impact the stock price in the short term.

Key Dates

Keywords

Algorhythm Holdings, RIME, Milton C. Ault III, Ault Lending, Hyperscale Data, Share Sale, Beneficial Ownership, Form 4, SEC Filing