GigaMedia Limited has recently announced that it has entered into an agreement of amendment with Aeolus Robotics Corporation regarding a convertible promissory note that GigaMedia had previously purchased. The purpose of the amendment is to extend the due date of the note for the remaining principal of US$7 million with advantageous terms and conditions.
Under the amended note, the principal amount, which bears an interest rate of 4% per annum, will be due in 30 months from the date of the amendment. Additionally, the principal amount may be convertible upon maturity, prepayment, certain events, Aeolus’s next round equity financing, or its initial public offering. The conversion price will be determined based on the lower of US$1.25 per share or 80% of the offering prices, if applicable.
The agreement with Aeolus allows GigaMedia to strategically remain engaged while reducing its exposure. GigaMedia will continue to review its investment alternatives and may enter into additional transactions with Aeolus’s securities in accordance with applicable laws.
GigaMedia Limited is a digital entertainment services provider headquartered in Taipei, Taiwan. The company is known for its innovative leadership in Asia, with a focus on mobile games and casual games. Their services include the development, distribution, and operation of digital entertainments, as well as platform services for games.
While forward-looking statements have been made in this announcement, GigaMedia cautions readers that they are based on the company’s current expectations and are subject to a number of risks and uncertainties. Readers are encouraged to refer to GigaMedia’s Annual Report on Form 20-F, which provides information on certain factors that could cause actual results to vary from the forward-looking statements.
– GigaMedia Limited PRNewswire Release