Shares of SoundHound AI on Tuesday fell after the audio and speech recognition company said it would have access to extra capital in case of need.
At 10:01 a.m. ET, shares were down 11% at $2.61. The stock has surged 47% since the year started, but lost 28% in the past 12 months.
The company, which as of June 30 had about $130 million of total cash, filed a shelf registration that would allow it to get extra funds.
As of March 31, the SoundHound’s cash and cash equivalents stood at $46.3 million, up from $9.2 million as of Dec. 31, 2022.
The filing and effectiveness of the shelf registration statement doesn’t require the company to raise additional capital, SoundHound AI noted.