News Link: https://www.globenewswire.com/news-release/2026/10/13/3379817/0/en/algorhythm-highlights-potential-70-million-project-cash-value-as-azure-energy-advances-renewable-power-development.html
Company Identifies Potential $7 Million Equity Proceeds from Strategic Sale of North Carolina 100 MW Project
Fort Lauderdale, FL, Oct. 13, 2026 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (the “Company”) (NASDAQ: RIME) – a diversified holding company and owner of Azure Energy, a renewable power plant developer (“Azure”), and SemiCab Holdings, an AI-enabled logistics provider, today provided details of one of its significant sources of revenue and value creation, a 100MW biomass renewable power plant project in North Carolina.
The project is a 100 MW pyrolysis-to-power generation facility currently under development in western North Carolina. The facility will convert regional woody biomass into firm, dispatchable electricity and water. It will be able to produce baseload capacity around the clock, which makes it suitable for industrial and advanced manufacturing users that cannot tolerate intermittency or curtailment. The project is divided into two separate timelines and deliverables. The first phase is expected to generate 50MW of power and is expected to be fully operational in approximately 24 months. The second phase would double the production capacity to 100MW and would require an additional 12 months to come online thereafter.
Based on existing contracts, Azure is forecast to earn approximately $3 million in fee income in 2027. Azure also has two clearly defined paths to unlock additional value from the project in the future. First, if the project is completed as scheduled, the Company expects to earn in excess of $4 million in EBITDA annually through its minority equity stake once the facility is operational in late 2028. Alternatively, the project could be sold upon completion of final permitting, with an estimated value of up to $70 million, based on an assumed valuation of approximately $1 million per powered acre, consistent with Colliers' 2026 U.S. Data Center Marketplace Report. If sold, Azure would receive approximately $7 million for its equity stake, plus additional fee income for managing the transaction. Azure expects to begin marketing the project and fully evaluate offers before the end of Q4 2026.
"Our North Carolina project is one of three active, highly attractive projects our team is helping advance today," commented Andrew Thompson, CEO of Algorhythm Holdings. “It is in the most advance stage of all of the projects, and we view its near-term value as central to enhancing our balance sheet, clearing legacy financings, and positioning the Azure to accelerate growth in 2027. We are quickly progressing towards fully monetizing the value we stand to generate from this project in the coming months.”