Newly public SoundHound AI (SOUN) saw its shares slide 7% during their market debut on Thursday following the company’s merger with SPAC Archimedes Tech SPAC Partners.
Shares of SoundHound opened at $8.72, hitting a session high of $10.80 in early trading followed by a low of $7.34 in late afternoon. The stock closed at $7.50, down 7% from prior session. Archimedes (ATSPU) stock closed at $8.10 on April 27, its last session before the merger.
Archimedes stockholders approved the merger on April 26. The companies announced had plans to merge in November through a deal that valued SoundHound at a pro forma enterprise value of around $2.1B and was expected to provide the SoundHound with $244M in gross proceeds.
The merger also included a $111M fully-committed common equity PIPE priced at $10 per share. The PIPE was anchored by Oracle, Qatar First Bank, Koch Industries and MKaNN Ventures and joined by investors such as Cota Capital, Vizio, HTC and Foxconn’s FIH Mobile.
SoundHound is the provider of a voice AI platform that allows customers to interact with products through speech. The company’s clients include Hyundai, Mercedes-Benz, Pandora, Deutsche Telekom, Snap, Vizio, Kia and Stellantis.
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