GigaMedia Announces Extension of Aeolus Convertible Note

Rhea-AI Summary

GigaMedia (NASDAQ: GIGM) entered a second amendment extending an Aeolus convertible promissory note originally purchased August 31, 2020. The outstanding principal is US$7.0 million at 4% annual interest, now due May 31, 2026.

Conversion may occur at maturity, prepayment, certain events, next equity financing, or IPO at the lower of $1.25 per share or 80% of the offering price. The amendment aims to support Aeolus's financing activities while GigaMedia reviews further investment options.

Positive

• Principal preserved: US$7.0 million extended to May 31, 2026
• Conversion optionality: Convertible at $1.25 or 80% of offering price
• Interest rate of 4% per annum provides modest yield

Negative

• Potential dilution if conversion occurs at discounted price
• Short-term maturity: note due in two months on May 31, 2026

Key Figures

Aeolus note principal: US$7 million Interest rate: 4% per annum New maturity date: May 31, 2026 +5 more

8 metrics

Aeolus note principal US$7 million Outstanding principal on Aeolus convertible promissory note

Interest rate 4% per annum Interest on Aeolus convertible promissory note

New maturity date May 31, 2026 Extended due date for Aeolus convertible note

Conversion price cap US$1.25 per share Maximum conversion price for Aeolus equity

Conversion discount 80% of offering price Alternative conversion basis vs future offering prices

Current share price $1.57 Pre-news price level vs Aeolus conversion terms

52-week range $1.38–$1.89 GIGM trading range before the note amendment news

Market cap $17,241,487 Equity value prior to Aeolus note extension announcement

Market Reality Check

Price: $1.57 Vol: Volume 11,792 is 62% abov...

high vol

$1.57 Last Close

Volume Volume 11,792 is 62% above 20-day average 7,270, showing elevated interest ahead of the note update. high

Technical Price $1.57 is trading above 200-day MA $1.53 and sits 16.93% below the 52-week high.

Peers on Argus

GIGM was up 0.64% with modest volume expansion, while only one peer in momentum ...

1 Down

GIGM was up 0.64% with modest volume expansion, while only one peer in momentum (BHAT) showed a sharp move, down about 10.3%, indicating today’s action was stock-specific rather than a sector-wide move.

Historical Context

2 past events · Latest: Jan 30 (Positive)

Pattern 2 events

Date	Event	Sentiment	Move	Catalyst
Jan 30	Board appointment	Positive	+0.7%	Appointment of experienced non-independent non-executive director to the board.
Oct 30	Quarterly earnings	Negative	-3.0%	3Q25 results with revenue growth but ongoing operating and net losses.

Pattern Detected

Limited history shows price reactions generally aligning with the perceived tone of corporate updates and earnings.

Recent Company History

Recent news for GIGM has focused on governance and financial reporting. On Jan 30, 2026, the company added a non-independent non-executive director, with the stock up 0.66% afterward. On Oct 30, 2025, third-quarter 2025 results showed revenue growth but continued losses, followed by a -3.01% move. Today’s amendment of the Aeolus convertible note continues a pattern of balance-sheet and governance-focused disclosures.

Market Pulse Summary

This announcement formalized a second amendment to GigaMedia’s Aeolus Robotics convertible promissor...

Analysis

This announcement formalized a second amendment to GigaMedia’s Aeolus Robotics convertible promissory note, keeping the US$7 million principal at 4% interest and extending maturity to May 31, 2026. The note remains convertible at US$1.25 per share or 80% of a future offering price, linking value to Aeolus’s financing or IPO outcomes. Investors may track future 6-K filings, Aeolus fundraising progress, and how this investment fits alongside GigaMedia’s operating performance.

Key Terms

convertible promissory note, convertible note, principal, initial public offering

4 terms

convertible promissory note financial

"entered into and executed with Aeolus Robotics Corporation an agreement of amendment to the Aeolus convertible promissory note"

A convertible promissory note is a loan a company takes now that can later be turned into shares instead of being repaid in cash. Think of it as lending money with the option to accept ownership in the business down the road; that matters to investors because it affects who gets paid first, how much ownership existing shareholders keep, and the company’s future valuation and cash needs. Terms such as conversion price, interest and maturity determine the financial impact.

convertible note financial

"This amendment is the second amendment to further extend the due date of the Note for the outstanding US$7 million principal"

A convertible note is a type of loan that a company gets from investors, which can later be turned into company shares instead of being paid back in cash. It matters because it helps startups raise money quickly without setting a fixed value for the company right away, making it easier to grow and attract investors.

principal financial

"the outstanding principal of US$7 million bearing an interest rate of 4% per annum"

Principal is the core sum of money at stake — the original amount invested, loaned, or still owed on a debt — and can also mean the main party involved in a transaction. Think of it as the seed from which interest, gains or losses grow: it determines how much interest accrues, how much must be repaid, and how big an investor’s exposure or claim is in a deal, so it directly affects returns and risk.

initial public offering financial

"or upon its initial public offering, at the lower of US$1.25 per share or 80% of the offering prices"

An initial public offering (IPO) is when a private company first sells its shares to the public and becomes a stock-listed company. It matters because it allows the company to raise money from a wide range of investors, helping it grow, while giving early shareholders a way to sell some of their ownership.

AI-generated analysis. Not financial advice.

TAIPEI, March 2, 2026 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced that the Company has entered into and executed with Aeolus Robotics Corporation ("Aeolus") an agreement of amendment to the Aeolus convertible promissory note previously purchased by GigaMedia on August 31, 2020 (the "Note"). This amendment is the second amendment to further extend the due date of the Note for the outstanding US$7 million principal, with advantageous terms and conditions.

For the further amended Note, the outstanding principal of US$7 million bearing an interest rate of 4% per annum, shall be due on May 31, 2026, and all or a portion of the principal amount under the further amended Note may be convertible upon maturity, upon prepayment or occurrence of certain events, upon its next round equity financing, or upon its initial public offering, at the lower of US$1.25 per share or 80% of the offering prices if applicable.

The agreement was entered into for the purpose of supporting Aeolus in carrying out its recent financing activities. GigaMedia continually reviews its investment alternatives and may enter into additional transactions of Aeolus's securities from time to time in accordance with applicable laws.

About GigaMedia

Headquartered in Taipei, Taiwan, GigaMedia Limited (Singapore registration number: 199905474H) is a diversified provider of digital entertainment services in Taiwan and Hong Kong. GigaMedia's digital entertainment service business is an innovative leader in Asia with growing capabilities of development, distribution and operation of digital entertainments, as well as platform services for games with a focus on mobile games and casual games. More information on GigaMedia can be obtained from www.gigamedia.com.

The statements included above and elsewhere in this press release that are not historical in nature are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. GigaMedia cautions readers that forward-looking statements are based on the Company's current expectations and involve a number of risks and uncertainties. Actual results may differ materially from those contained in such forward-looking statements. Information as to certain factors that could cause actual results to vary can be found in GigaMedia's Annual Report on Form 20-F filed with the United States Securities and Exchange Commission in April 2025.

View original content:https://www.prnewswire.com/news-releases/gigamedia-announces-extension-of-aeolus-convertible-note-302700952.html

SOURCE GigaMedia

FAQ

What did GigaMedia (GIGM) announce on March 2, 2026 regarding Aeolus?

GigaMedia announced a second amendment extending an Aeolus convertible note due May 31, 2026. According to the company, the outstanding principal is US$7.0 million carrying 4% annual interest, with conversion features tied to financing rounds or an IPO.

What are the key financial terms of the amended Aeolus note held by GIGM?

The amended note carries US$7.0 million principal at 4% interest, due May 31, 2026. According to the company, conversion may occur at maturity, prepayment, certain events, next equity financing, or IPO at $1.25 or 80% of offering price.

How could the Aeolus note conversion affect GigaMedia (GIGM) shareholders?

Conversion could dilute existing equity if converted into Aeolus shares at the discounted price. According to the company, conversion occurs at the lower of $1.25 per share or 80% of the offering price, potentially increasing Aeolus share count.

Why did GigaMedia extend the Aeolus convertible note to May 31, 2026?

The extension was entered to support Aeolus's recent financing activities and provide flexibility. According to the company, the amendment aims to assist Aeolus while GigaMedia continues to review additional investment opportunities.

When can the Aeolus note held by GIGM be converted into equity?

The note may be converted at maturity, upon prepayment, certain events, next equity financing, or an IPO. According to the company, the conversion price is the lower of $1.25 per share or 80% of the offering price.