US$7M Aeolus note extension by GigaMedia (NASDAQ: GIGM)
Rhea-AI Filing Summary
GigaMedia Limited reports that it has signed a second amendment to its Aeolus Robotics convertible promissory note originally purchased on August 31, 2020. The note’s outstanding principal of US$7 million will continue to bear interest at 4% per year and is now due on May 31, 2026.
All or part of the principal may convert into Aeolus equity upon maturity, prepayment, certain events, Aeolus’s next equity financing, or its initial public offering, at the lower of US$1.25 per share or 80% of the applicable offering price. GigaMedia states that the amendment is intended to support Aeolus’s recent financing activities and that it may make additional investments in Aeolus securities in line with applicable laws.
Positive
- None.
Negative
- None.
Insights
GigaMedia extends a US$7M Aeolus convertible note on fixed 4% terms.
The amendment keeps GigaMedia’s exposure to the Aeolus Robotics convertible note at US$7 million with a 4% annual interest rate, pushing maturity to May 31, 2026. This preserves both interest income and potential upside from equity conversion tied to future Aeolus financing milestones.
Conversion is allowed at the lower of US$1.25 per share or 80% of the offering price at maturity, prepayment, certain events, the next equity round, or an IPO. Actual impact depends on Aeolus’s ability to complete financings or an offering on favorable terms.
The amendment is described as supporting Aeolus’s recent financing activities, and GigaMedia notes it may enter further Aeolus securities transactions subject to law. Future company filings would clarify outcomes if Aeolus completes equity financings or an initial public offering that trigger conversion.
FAQ
What did GigaMedia (GIGM) announce regarding the Aeolus convertible note?
What are the key financial terms of GigaMedia’s Aeolus convertible note?
How can GigaMedia’s Aeolus note convert into equity and at what price?
Why did GigaMedia extend the maturity of the Aeolus convertible note?
Does GigaMedia plan additional investments in Aeolus after this note amendment?
What business does GigaMedia (GIGM) operate alongside its Aeolus investment?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15D-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March, 2026
Commission File Number: 000-30540
GIGAMEDIA LIMITED
8F, No.22, Lane 407, Section 2, Tiding Boulevard
Neihu District
Taipei, Taiwan (R.O.C.)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F [ x ] Form 40-F [ ]
(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes [ ] No [ x ]
(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b) :82- .)
GIGAMEDIA LIMITED is submitting under cover of Form 6-K:
GigaMedia Announces Extension of Aeolus Convertible Note
(attached hereto as Exhibit 99.1)
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
GigaMedia Limited |
|
(Registrant) |
|
|
Date: March 2, 2026 |
By: /s/ HUANG, CHENG-MING |
|
(Signature) |
|
Name: HUANG, CHENG-MING |
|
Title: Chief Executive Officer |
|
Press Release |
Exhibit 99.1
FOR IMMEDIATE RELEASE |
For further information contact: |
|
|
|
Investor Relations Department |
|
Country/City Code 8862 Tel: 2656-8000 |
|
ir@gigamedia.com.tw |
GigaMedia Announces Extension of Aeolus Convertible Note
TAIPEI, Taiwan, March 2, 2026 – 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.
# # #