Algorhythm Holdings Announces Strategic Review and Evaluation of Potential Business Combination in Data Center Energy Infrastructure Sector

Company Currently Evaluating Potential Acquisition of Energy Infrastructure Company 
Focused on Power Generation for Data Centers

Fort Lauderdale, FL, Aug. 19, 2026 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (the “Company” or “Algorhythm”) (NASDAQ: RIME) – a leading provider of AI-powered logistics solutions, today announced that its Board of Directors has authorized management to evaluate strategic alternatives intended to enhance shareholder value, including a potential acquisition of a company operating in the rapidly growing energy infrastructure market supporting data centers.

As part of this strategic review, the Company is currently evaluating a potential transaction with an energy company focused on the development of highly scalable, island power generation infrastructure solutions for data centers.

The Company believes the rapidly increasing power requirements associated with artificial intelligence, cloud computing and data center development are creating significant opportunities across the energy infrastructure sector. The Board believes the potential transaction warrants further evaluation as part of its broader review of opportunities to strengthen the Company and create sustained shareholder value.

“We have a responsibility to continually evaluate opportunities that we believe can strengthen the Company and enhance value for our shareholders,” said Gary Atkinson, Chief Executive Officer of Algorhythm. “As part of that process, we have identified a unique opportunity in the energy infrastructure sector that we believe merits serious consideration.”

“The target company provides a power generation solution that we believe is particularly well suited to the rapidly growing power requirements of hyperscale data centers,” said Mr. Atkinson. “Its services are intended to provide scalable, dispatchable power while addressing several of the challenges facing data center developers today, including grid constraints, water consumption and environmental impact. We believe these characteristics make the technology particularly compelling as AI and hyperscale computing continue to drive unprecedented demand for reliable power generation,” concluded Mr. Atkinson.

The acquisition, if completed, would result in the energy business becoming the Company’s principal operating business. The structure, valuation, consideration and other material terms of any potential transaction remain subject to ongoing discussions, due diligence, negotiation of definitive agreements, Board approval and other applicable conditions and approvals.

The Company emphasized that it has not entered into a binding definitive agreement with respect to the potential business combination and has not made a final determination regarding any strategic alternative for SemiCab. There can be no assurance that the Company's strategic review or discussions regarding the potential business combination will result in the execution of a definitive agreement or the completion of any transaction.

Any potential transaction would be subject to the negotiation and execution of definitive agreements, completion of due diligence, applicable Board and shareholder approvals, regulatory and Nasdaq requirements, financing conditions, if applicable, and other customary closing conditions.

The Company does not intend to provide additional updates regarding the strategic review or potential transaction unless and until it determines that further disclosure is appropriate or required by applicable securities laws.

About Algorhythm Holdings

Algorhythm Holdings, Inc. is a leading AI technology company that owns and operates SemiCab. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. SemiCab uses AI/ML predictions and advanced predictive optimization models to enable fully loaded round trips. With SemiCab’s AI platform, shippers pay less and carriers make more without having to change a thing. For additional information, please go to: http://www.semicab.com.

Investor Relations Contact

Brendan Hopkins
407-645-5295
investors@algoholdings.com
www.algoholdings.com

Media Contact

FischTank PR
Algorhythm@fischtankpr.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. Such statements include statements about the Company’s strategic review and evaluation of potential acquisition candidates . These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm’s reports to the Securities Exchange Commission (the “SEC”), including, without limitation Algorhythm’s Annual Report on Form 10-K for the year ended December 31, 2025 and the Company’s other filings with the SEC. Additional risks and uncertainties include, but are not limited to: the risk that the Company may not enter into a binding definitive agreement with respect to the potential business combination; the risk that the Company’s strategic review may not result in the completion of any transaction; risks related to the negotiation and execution of definitive agreements, completion of due diligence, obtaining applicable Board and shareholder approvals, satisfying regulatory and Nasdaq requirements, securing financing, if required, and satisfying other customary closing conditions; the risk that the acquisition, if completed, would result in the energy business becoming the Company’s principal operating business, which would represent a significant change in the Company’s business and operations; risks related to the Company’s ability to successfully integrate and operate a business in the energy infrastructure sector; risks associated with the energy infrastructure market supporting data centers, including changes in power demand from artificial intelligence, cloud computing and data center development; risks related to the scalability, performance and market acceptance of the target company’s power generation technology. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise.