Archimedes Tech SPAC (ATSPT) Shareholders Approve SoundHound Deal
Archimedes Tech (NASDAQ:ATSPT) announced this morning that its shareholders have voted to approve its combination with voice AI firm SoundHound in a special meeting held yesterday.
The press release gave limited details on the transaction, including redemptions, but ATSPT traded below its trust value throughout its redemption deadline on Friday, April 22.
Archimedes Tech recently added $2 million to their PIPE for its combination with SoundHound, bringing the deal’s total PIPE proceeds to $113 million. The SPAC entered into a subscription agreement with an accredited investor on April 9, to which the new subscriber agreed to purchase 200,000 shares of Class A Common Stock of Archimedes, at a purchase price of $10.00 per share. The original PIPE of $111 million already covered the deal’s $111 million minimum cash condition, but the additional investment will provide extra cushion in a high redemption environment.
The transaction closed today and the combined company, called SoundHound AI, Inc., will begin trading on Nasdaq under the new ticker symbol “SOUN” on April 28, 2022.
The parties initially announced the $2.1 billion combination on November 16, 2021. Santa Clara, California-based SoundHound provides AI-powered voice engagement tools for a wide range of companies including car manufacturers and device-makers.
SoundHound was recently named Frost & Sullivan Best Practices Company of the Year in North American Automotive Connected Voice Assistance Industry and expanded its leadership team with new executive appointments, including Nitesh Sharan, Chief Financial Officer, and Zubin Irani, Chief Revenue Officer.
ADVISORS
- Guggenheim Securities, LLC is serving as exclusive financial advisor and capital markets advisor to SoundHound.
- Ellenoff Grossman & Schole, LLP is serving as legal advisor to SoundHound.
- EarlyBirdCapital, Inc. is serving as financial advisor and Loeb & Loeb is serving as legal advisor to Archimedes.