Summary by Moomoo AI
SoundHound AI, Inc. has announced the mandatory automatic conversion of its Series A Convertible Preferred Stock into Class A common stock. This conversion affects the remaining holders of 58,574 shares of Series A Preferred Stock, following the conditions set forth in the Certificate of Designations being met. The trigger for this conversion was the company's Class A common stock achieving a daily volume-weighted average closing price of at least $2.50 for 90 trading days within a 120 consecutive trading day period starting February 14, 2024. As a result, 2,134,631 shares of Class A common stock are expected to be issued to the holders of the Series A Preferred Stock. The conversion, which took place on June 24, 2024, will result in no shares of Series A Preferred Stock remaining outstanding. The announcement was made in a Current Report on Form 8-K filed with the SEC, and the conversion is in line with the terms described in the Certificate of Designations filed with the State of Delaware.