BUZZ-SoundHound AI drops on $250 mln stock sale plans

Shares of SoundHound AI SOUN.O down 4.6% at $13.42 before the bell after artificial intelligence voice provider files up to $500 mln mixed shelf

As part of the shelf, Santa Clara, California-based firm may sell up to $250 mln of shares in ATM (at-the-market) program, per the filing

Co says on Jan 27, it entered into equity sales agreement with Cantor Fitzgerald, Guggenheim, Oppenheimer, Wedbush, Ladenburg and Northland Secs for the ATM

Says intends to use net proceeds from sales for general purposes, including investments or acquisitions, though adds it currently has no specific acquisition contemplated

Co, which counts AI poster child Nvidia NVDA.O as an investor, had ~360.8 mln Class A shares outstanding as of Dec 31, according to the filing

SOUN shares on Mon closed down 11.2% at $14.07 as China's DeepSeek AI model hammered tech stocks, including record market-cap loss for NVDA

Through Mon, SOUN shares off 29% YTD. Stock was trading just below $2 a year ago