GigaMedia Announces Purchase of Convertible Note of Aeolus Robotics Corporation

Rhea-AI Summary

GigaMedia (NASDAQ: GIGM) has announced the purchase of a US$2.6 million convertible promissory note from Aeolus Robotics , a global company focused on intellectual robotics. The note features:

• 4.5% annual interest rate
• 36-month maturity period
• Conversion option to Aeolus ordinary shares at US$0.02 per share

The agreement signals a strategic long-term relationship between both companies, with GigaMedia indicating potential future investments in Aeolus securities.

Positive

• Strategic investment in robotics sector
• 4.5% interest rate provides steady income
• Conversion option offers potential equity upside
• Flexible conversion terms at multiple trigger points

Negative

• Significant cash commitment of US$2.6M
• 36-month lock-up period limits liquidity
• Risk exposure to early-stage robotics company

TAIPEI, March 7, 2025 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced that the Company has entered into and executed an agreement to purchase a US$2,600,000 principal amount of convertible promissory note (the "Note") issued by Aeolus Robotics Corporation ("Aeolus"), a global company primarily engaged in designing, manufacturing, processing and sales of intellectual robotics.

The Note, bearing interest at a rate of 4.5% per annum, shall be due in 36 months, and all or a portion of the principal amount under the Note may be convertible at GigaMedia's option upon maturity, upon prepayment, or when certain events occur, into ordinary shares of Aeolus at a price of US$0.02 per share.

The purchase and sale of the Note exhibits GigaMedia and Aeolus's mutual commitment to a longer-term strategic relationship. GigaMedia continually reviews its investment alternatives and may enter into additional transactions of Aeolus's securities 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 2024.

View original content:https://www.prnewswire.com/news-releases/gigamedia-announces-purchase-of-convertible-note-of-aeolus-robotics-corporation-302395606.html

SOURCE GigaMedia

FAQ

What are the key terms of GigaMedia's (GIGM) convertible note purchase from Aeolus Robotics?

The US$2.6M note has a 4.5% annual interest rate, 36-month maturity, and can be converted to Aeolus shares at US$0.02 per share.

When does GIGM's convertible note from Aeolus Robotics mature?

The convertible note matures in 36 months from its issue date in March 2025.

What is the conversion price for GIGM's Aeolus Robotics convertible note?

The conversion price is US$0.02 per ordinary share of Aeolus Robotics.

What strategic implications does the convertible note purchase have for GIGM?

It represents a long-term strategic relationship with Aeolus Robotics, with potential for additional future investments.