---
title: "Algorhythm Holdings Strikes Section 3(a)(10) Settlement; Up to 5M Shares to Retire $1.93M Debt"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/293799820.md"
description: "Algorhythm Holdings settled $1.93M in liabilities with Continuation Capital via a Section 3(a)(10) agreement approved by a Florida court on July 23, 2026. The company may issue up to 5 million common shares until proceeds equal 120% of the claim, subject to a 19.99% ownership cap. This transaction aims to resolve acquired debts and improve the balance sheet without underwriting fees."
datetime: "2026-07-24T21:23:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/293799820.md)
  - [en](https://longbridge.com/en/news/293799820.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/293799820.md)
---

# Algorhythm Holdings Strikes Section 3(a)(10) Settlement; Up to 5M Shares to Retire $1.93M Debt

Algorhythm Holdings entered into a Section 3(a)(10) settlement with Continuation Capital to resolve $1,928,014 of acquired liabilities. The company may issue up to 5,000,000 common shares in tranches until Continuation Capital has generated aggregate proceeds equal to 120% of the claim amount, subject to a 19.99% ownership cap. A Florida court approved the settlement on Jul 23, 2026, following a fairness hearing. The securities are being issued without underwriting fees under the Section 3(a)(10) exemption.

**Agreement details:**

-   **Agreement type**: Section 3(a)(10) settlement agreement for stock issuance to satisfy liabilities
-   **Counterparty**: Continuation Capital
-   **Signed / Effective**: Jul 21 2026 / Jul 23 2026
-   **Duration / Termination**: Until CCI generates 120% of claim in proceeds
-   **Reason**: Settle acquired liabilities and improve balance sheet

Original SEC Filing: Algorhythm Holdings, Inc. \[ RIME \] - 8-K - Jul. 24, 2026

**Disclaimer**

This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.

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