Auddia Inc. announced that it has entered into a securities purchase agreement with accredited investors to issue 2,314 shares of Series B convertible preferred stock at a purchase price of $1,000 per share for the gross proceeds of $2,314,000 on April 23, 2024. The Series B Preferred Stock is convertible into Common Stock at an initial conversion price of $1.851 per share of Common Stock. The company also issued warrants exercisable for 1,198,345 shares of Common Stock with a five year term and an initial exercise price of $1.851 per share.

The Series B Preferred Stock may also be converted into shares of Common Stock at the option of the company if the closing price of the common stock exceeds 300% of the Conversion Price for 20 consecutive trading days. The securities described above have not been registered under the Securities Act of 1933, as amended. The company has raised $2,314,000 from 4 investors pursuant to regulation D.