EdgeMode Signs Non-Binding Term Sheet for $4 Million Convertible Note to Support Infrastructure Development and Growth Strategy
Rhea-AI Summary
EdgeMode (OTC: EDGM) has signed a non-binding term sheet for a $4 million convertible note financing to support infrastructure development and growth initiatives. The funding will facilitate the acquisition of Blackberry AIF and development of Swedish digital infrastructure sites, expected to increase the company's asset base by $140 million.
The proposed convertible note terms include an 8% annual interest rate, 12-month maturity, and conversion rights after 180 days at a 35% discount to market price. EdgeMode maintains prepayment options at 120-125% premium, with investor restrictions on short selling. The company targets a $1 billion enterprise valuation as sites become operational.
Positive
- Potential $4 million capital injection to fund growth initiatives
- Expected $140 million increase in asset base through Blackberry AIF acquisition
- Strategic expansion into Swedish digital infrastructure market
- Company maintains prepayment options for financial flexibility
Negative
- 35% conversion discount represents significant potential dilution
- Non-binding term sheet with no guarantee of closing
- Short 12-month maturity period creates refinancing pressure
- Convertible note bears relatively high 8% interest rate
News Market Reaction – EDGM
On the day this news was published, EDGM declined 20.00%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
FORT LAUDERDALE, Fla., Aug. 07, 2025 (GLOBE NEWSWIRE) -- EdgeMode, Inc. (OTC: EDGM), a next-generation provider of high-performance, sustainable computing infrastructure, today announced it has signed a non-binding term sheet for a
The anticipated capital will support the acquisition of Blackberry AIF as well as the development of EdgeMode’s recently acquired digital infrastructure sites in Sweden. This acquisition is expected to immediately increase the Company’s asset base by approximately
“This proposed financing is another step toward executing our long-term vision,” said Simon Wajcenberg, Chief Financial Officer of EdgeMode. “We are acquiring high-potential infrastructure assets, and as we secure power and develop these sites, we believe we are on a clear path to significantly increasing both revenue potential and shareholder value.”
Under the proposed terms, the convertible note would bear interest at
Importantly, the term sheet is non-binding and does not represent a definitive agreement. There can be no assurance that definitive agreements will be executed or that the financing will close.
About EdgeMode, Inc.
EdgeMode Inc. (OTC: EDGM) is a digital infrastructure company specializing in the design, development, and operation of high-performance computing (HPC) data centers. With a focus on purpose-built, energy-efficient colocation facilities, EdgeMode delivers mission-critical infrastructure solutions for customers engaged in AI, machine learning, and cloud computing. The company is actively building a new generation of scalable, sustainable data centers, beginning with its flagship campus in Marviken, Sweden. Backed by deep industry expertise, strategic partnerships, and long-term energy contracts, EdgeMode is poised to become a leading provider of digital infrastructure for the world’s most demanding compute workloads.
Forward-Looking Statements
Certain statements made in this press release are not based on historical facts but are forward-looking statements. These statements can be identified by the use of forward-looking terminology such as “aim,” “anticipate,” “believe,” “can,” “could,” “continue,” “estimate,” “expect,” “evaluate,” “forecast,” “guidance,” “intend,” “likely,” “may,” “might,” “objective,” “ongoing,” “outlook,” “plan,” “potential,” “predict,” “probable,” “project,” “seek,” “should,” “target” “view,” “will,” or “would,” or the negative thereof or other variations thereon or comparable terminology, although not all forward-looking statements contain these words. These statements reflect the Company’s reasonable judgment with respect to future events and are subject to risks, uncertainties and other factors, many of which have outcomes difficult to predict and may be outside our control, that could cause actual results or outcomes to differ materially from those in the forward-looking statements. Such risks and uncertainties include statements relating to the Company’s ability to successfully launch, commercialize, develop additional features and achieve market acceptance of its products and technologies and integrate its products and technologies with First-party platforms or technologies; the Company’s efforts and ability to drive the adoption of its products and technologies as a standard feature, including their use in homes, hotels, offices and cruise ships; the Company’s ability to capture market share; the Company’s estimates of its potential addressable market and demand for its products and technologies; the Company’s ability to raise additional capital to support its operations as needed, which may not be available on acceptable terms or at all; the Company’s ability to continue as a going concern; the Company’s ability to execute on any sales and licensing or other strategic opportunities; the possibility that any of the Company’s products will become National Electrical Code (NEC)-code or otherwise code mandatory in any jurisdiction, or that any of the Company’s current or future products or technologies will be adopted by any state, country, or municipality, within any specific timeframe or at all; risks arising from mergers, acquisitions, joint ventures and other collaborations; the Company’s ability to attract and retain key executives and qualified personnel; guidance provided by management, which may differ from the Company’s actual operating results; the potential impact of unstable market and economic conditions, including recent measures adopted by the federal government, on the Company’s business, financial condition, and stock price; and other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including its periodic reports on Form 10-K and Form 10-Q. There can be no assurance as to any of the foregoing matters. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by U.S. federal securities laws.
Company Contact:
Charlie Faulkner
Chief Executive Officer
EdgeMode Inc.
charlie@edgemode.io
Investor Relations
Jeff Ramson
Chief Executive Officer
PCG Advisory, Inc.
jramson@pcgadvisory.com
FAQ
What is the size and purpose of EdgeMode's (EDGM) convertible note financing?
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