Form 4: Stingray Group Sells Shares Back to Algorhythm Holdings in Stock Repurchase Agreement

Stingray Group Inc. sold 5,494 shares of Common Stock to Algorhythm Holdings, Inc. for $0.26 per share, according to a Form 4 filing.

Summary

• Stingray Group Inc. sold 5,494 shares of Algorhythm Holdings, Inc. (RIME) Common Stock on February 18, 2025.
• The sale was executed under a Stock Repurchase Agreement dated December 3, 2024.
• The price per share was $0.26, with payment made via a promissory note issued by Algorhythm Holdings to Stingray.
• After the transaction, Stingray directly owns 1,611 Common Shares and 1,111 warrants to purchase Common Shares.
• Eric Boyko, who controls approximately 70.78% of Stingray's voting power as of May 31, 2024, indirectly owns 1,611 Common Shares (excluding warrants).

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a standard transaction (stock repurchase) with no clear positive or negative implications. The price is low, but it's a small transaction.

Industry Context

Stock repurchase agreements are common mechanisms for companies to return capital to shareholders or consolidate ownership. This transaction indicates Algorhythm Holdings' willingness to buy back its own shares, potentially signaling confidence in its future prospects or a desire to manage its share structure.

Related Party Transactions

• The Stock Repurchase Agreement between Stingray Group Inc. and Algorhythm Holdings, Inc. could be considered a related party transaction given Eric Boyko's significant control over Stingray and his indirect ownership in Algorhythm Holdings.

Stakeholder Impact

• Shareholders of Algorhythm Holdings may see a slight increase in EPS due to the reduced share count.
• Stingray Group receives cash (via a promissory note) for the shares sold.

Key Dates

Keywords

Stock Repurchase, Form 4, Beneficial Ownership, Common Stock, Stingray Group, Algorhythm Holdings, RIME, Eric Boyko