GigaMedia Announces Partial Conversion of Convertible Note of Aeolus Robotics Corporation

Rhea-AI Summary

GigaMedia Limited (NASDAQ: GIGM) announced the conversion of 20% of a US$10 million convertible promissory note issued by Aeolus Robotics Corporation on January 21, 2022. This resulted in GigaMedia receiving 735,835 shares of Series B preferred shares, valued at US$2 million, at a conversion price of US$2.718 per share, effective December 30, 2021. Post-conversion, the remaining principal under the note is US$8 million, indicating GigaMedia's ongoing financial engagement with Aeolus.

Positive

• None.

Negative

• Conversion of US$2 million reduces liquidity, with US$8 million remaining under the promissory note. Potential dilution of shares could impact existing shareholders.

TAIPEI, Jan. 25, 2022 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced that, on January 21, 2022, the Company has received the certificates of the 735,835 shares of the Series B preferred shares issued by Aeolus Robotics Corporation ("Aeolus"), as a result of its conversion of 20% of the US$10,000,000 principal amount convertible promissory note (the "Note") issued by Aeolus.

The conversion was exercised in accordance with the right under the Note and was in the amount of US$2,000,000 at the conversion price of US$2.718 per share, effective December 30, 2021. After the conversion, the outstanding principal amount under the Note is US$8,000,000.

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.tw.

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 2021.

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SOURCE GigaMedia

FAQ

What is GigaMedia's recent announcement regarding Aeolus Robotics?

GigaMedia announced the partial conversion of a US$10 million convertible note into 735,835 Series B preferred shares of Aeolus Robotics, effective January 21, 2022.

How many shares did GigaMedia receive from Aeolus Robotics?

GigaMedia received 735,835 shares of Series B preferred shares of Aeolus Robotics as part of the conversion.

What is the conversion price for the shares received by GigaMedia?

The conversion price for the shares received by GigaMedia was US$2.718 per share.

What is the remaining principal amount of the note after the conversion?

After the conversion, the remaining principal amount of the note is US$8 million.

When was the conversion of the convertible note effective?

The conversion of the convertible note was effective on December 30, 2021.