Why Did Auddia Stock Surge Over 90% Overnight?

Auddia Inc. (NASDAQ:AUUD) jumped 91.66% in overnight trading to $1.60 on Tuesday. The move followed the company’s Securities and Exchange Commission (SEC) filing disclosing a definitive agreement and plan of merger with Colorado-based Thramann Holdings, LLC.

Thramann Holdings is wholly owned by Auddia’s President and CEO, Jeff Thramann.

Related-Party Deal Triggers After-Hours Spike

According to the filing, under the agreement, both entities would merge under holding company McCarthy Finney Inc., a Delaware corporation, with former Thramann members receiving approximately 80% economic interest and existing AUUD shareholders retaining roughly 20%.

Closing Conditions And Stockholder Vote Required

Since the transaction is considered a related-party deal under U.S. securities laws, a special committee of independent directors unanimously approved the merger, calling it "advisable, fair to and in the best interests of Auddia and its stockholders," according to the filing.

The filing also states that the closing conditions include stockholder approval, the effectiveness of the SEC registration statement, and Auddia maintaining at least $12 million in net cash.

Trading Metrics, Technical Analysis

The Relative Strength Index (RSI) of AUDD stands at 45.94.

The technology company has a market capitalization of $2.60 million, with a 52-week high of $14.58 and a 52-week low of $0.66.

Over the past 12 months, the stock has fallen 88.90%.

The stock is currently positioned very close to its annual low, just about 1.2% above its 52-week low.

Price Action: On Tuesday, the stock closed at $0.83, up 24.12%, according to Benzinga Pro data.

Benzinga’s Edge Stock Rankings indicate that AUUD has a negative price trend across all time frames.

Photo Courtesy: Xharites on Shutterstock.com

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.