Hudd, a Norwegian social media platform, recently suggested a crisis share issue after its funding round fell far short of expectations. The company aimed to raise NOK 40 million but only attracted 300,000 kroner in subscriptions. This shortfall has placed the company's financial stability in jeopardy, potentially exhausting cash reserves by March next year if no further capital is secured.
In response to the funding crisis, Hudd’s founder has suggested issuing shares at a drastically reduced price of 12 øre per share. This is in stark contrast to the 2025 round price of 80 øre, significantly lowering the company's valuation to NOK 20 million from NOK 122.2 million. The founder has also chosen to halve his own salary to mitigate the company's financial burdens while Hudd prepares to launch its new app, Daybird.
If the proposed share issue fails, Hudd risks depleting its funds by early next year, which underscores the urgent need for strategic financial decisions to navigate this turbulent period.