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SoundHound AI shares fall 7% in market debut after SPAC merger

SoundHound AI shares fall 7% in market debut after SPAC merger

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The recently publicized SoundHound AI (SOUN) saw its shares fall 7% during their market debut the following Thursday the company’s merger with SPAC Archimedes Tech SPAC Partners.

Shares of SoundHound opened at $ 8.72, reaching a session high of $ 10.80 in early trading, followed by a low of $ 7.34 in the late afternoon. The stock closed at $ 7.50, down 7% from the previous session. Archimedes (ATSPU) stock closed at $ 8.10 on April 27, its last pre-merger session.

Archimedes’ shareholders approved the merger on April 26. The companies announced plans to merge in November through a deal that valued SoundHound at a pro forma company value of about $ 2.1 billion. and was expected to give SoundHound $ 244M in gross revenue.

The merger also included a fully committed PIPE of DKK 111 million. USD to 10 USD per. shares. PIPE was anchored by Oracle, Qatar First Bank, Koch Industries and MKaNN Ventures and joined 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 customers include Hyundai, Mercedes-Benz, Pandora, Deutsche Telekom, Snap, Vizio, Kia and Stellantis.

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