Form 4: SoundHound AI CFO Nitesh Sharan Converts Preferred Stock to Common Stock
SEC Form 4
Nitesh Sharan, CFO of SoundHound AI, converted Series A Preferred Stock into Class A Common Stock on June 27, 2024, according to a Form 4 filing.
Summary
- On June 27, 2024, Nitesh Sharan, the Chief Financial Officer of SoundHound AI, converted Series A Preferred Stock into Class A Common Stock.
- The conversion involved 121,506 shares of Class A Common Stock.
- The Series A Preferred Stock was converted at a ratio determined by the original issue price of $30.00 per share plus accrued dividends, divided by a conversion price of $1.00 per share.
- Following the transaction, Sharan directly owns 850,139 shares of Class A Common Stock.
Sentiment
Score: 5
Explanation: This is a neutral event, reflecting a standard conversion of securities. It doesn't inherently indicate positive or negative sentiment.
Industry Context
Form 4 filings are a routine part of insider trading regulations, providing transparency into the transactions of company executives and directors. This filing indicates a conversion of preferred stock to common stock, which is a common financial maneuver.
Stakeholder Impact
- The conversion of preferred stock to common stock could have a minor dilutive effect on existing shareholders, but the impact is likely minimal given the size of the transaction.
Key Dates
| Date | Description |
|---|---|
| May 4, 2022 | Date of the Limited Power of Attorney for reporting under Section 16(a) of the Securities Exchange Act of 1934. |
| January 2023 | Previous reporting of the acquisition of Series A Preferred Stock on a Form 4. |
| May 2, 2023 | Date the Series A Preferred Stock became convertible at the option of the holder following the completion of certain conditions. |
| June 27, 2024 | Date of the conversion of Series A Preferred Stock to Class A Common Stock. |
| July 1, 2024 | Date of signature on the Form 4 filing. |
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