Fort Lauderdale, FL, Nov. 01, 2021 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. (“Singing Machine” or the “Company”) (OTCQX: SMDM) -- the North American leader in consumer karaoke products, announced that the Company has begun to execute on its strategy to uplist to a national exchange. The Company is pursuing a national exchange listing to enhance its investor profile as part of its capital markets initiative with the goal of enhancing shareholder value.
Pursuant to the terms of a recent equity investment by a group of institutional funds, the Company has begun the process to uplist to a national exchange. The Company has retained Sichenzia, Ross, Ference LLP as legal counsel to facilitate the process and has submitted an application to uplist to a national exchange. As the first step of the qualifying process, the Company has also obtained the approval of shareholders holding a majority of the voting power of the Company to undertake a reverse stock split of the Company’s common stock to meet the minimum bid price requirement for listing on a national exchange.
“Over the past few years, the Company has taken significant strides to cement its position as the leading player within the karaoke space, making now the right time to try to join a national exchange,” noted Singing Machine CEO, Gary Atkinson. “At the beginning of fiscal 2022, the Company determined that it would be in the best interests of shareholders to reconstitute the shareholder base by buying out the legacy 51% majority shareholder. Through a successful recapitalization in August of 2021, the Company was able to replace the previous majority shareholder with several high-quality institutional investors and a key strategic investor. This has positioned the Company to undertake further initiatives that it believes have the potential to unlock further value for shareholders.”
Mr. Atkinson continued, “The team has been laser focused on innovation and bringing the best products to market. Our transformational plan is already underway to begin to transition the business from a hardware-only business to a fully-integrated hardware/music content business.”
“We acknowledge the growth opportunity in front of us, by listing on a national exchange, we will be optimally positioned to capitalize on our go-to-market, carefully matching our capital needs to maximize growth,” added Singing Machine CFO, Lionel Marquis. “Our goal is to have a Singing Machine in every home in America, and we believe a listing on a national exchange will open more doors to a larger pool of investors to help drive shareholder value.”
“Singing Machine has been America’s number one brand of karaoke machines for over 40 years and has provided homes across the world with countless hours of entertainment. We are ready to take the next step in development of the Company, and further attract the attention of respected institutions and retail investors as we continue scaling the business.”
The Company intends to take all actions to meet the listing requirements of the national exchange. However, there can be no assurance that the Company’s application will be approved and if it is approved that the Company will continue to meet the listing requirements of a national exchange.
About The Singing Machine
Singing Machine® is the leading provider of karaoke products to consumers across the world. The Company offers the industry's widest line of at-home and in-car karaoke entertainment products, which allow consumers to find a machine that suits their needs and skill level. The Company’s products are sold in over 25,000 locations worldwide, including at well-known retailers such as Amazon, Costco, Sam’s Club, Target, and Walmart. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products. To learn more, go to www.singingmachine.com.
Cautionary Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management and include, but are not limited to statements about our financial statements for the fiscal year ended March 31, 2021. You should review our risk factors in our SEC filings which are incorporated herein by reference. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
Investor Relations Contact:
Brendan Hopkins
(407) 645-5295
investors@singingmachine.com
www.singingmachine.com
www.singingmachine.com/investors
