SOUN Stock Alert: SoundHound AI Pays Off Debts Early

SoundHound AI (NASDAQ:SUN) shares received a boost on Monday after the voice AI (AI) Solutions company has announced the early repayment of its debts!

According to SoundHound AI, the company has reached an agreement with its lenders to prepay its remaining debt. This will result in the full repayment of the $100 million the company owes to lenders.

SoundHound AI points out that this will allow the company to pay off all outstanding debt while saving $55 million in interest and fees, and will leave the company with $180 million in cash.

Nitesh Sharan, CEO of SoundHound AI, said the following about debt repayment.

“Thanks to the tremendous opportunity to deliver innovative AI globally, our strong net liquidity has significantly improved our financial profile. We now have a debt-free capital structure that allows us to operate with even greater flexibility to meet increasing customer demand for our voice AI solutions.”

What this means for SOUN shares

The news that the company is paying off its debt puts it in a stronger financial position than before. This could also make it a more attractive investment for traders. This means it could be beneficial for SOUN stock.

SOUN stock is up 2.3% since Monday morning, with more than 9 million shares traded, a far cry from its daily average trading volume of about 42.3 million shares.

Investors who want to know more about the latest stock market news are in luck!

We have all the important stock market news that traders need to know on Monday! This includes what is happening with the American deficit crisis, Tonix Pharma (NASDAQ:TNXP) falling stock prices and more. Find all this news at the links below!

More stock market news from Monday

At the time of publication, William White had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.

Article printed by InvestorPlace Media, https://investorplace.com/2024/06/soun-stock-alert-soundhound-ai-pays-off-debt-early/.

©2024 InvestorPlace Media, LLC