1. GigaMedia purchases a $2.6M convertible promissory note from Aeolus Robotics. 2. The note bears 4.5% interest and is convertible into shares at $0.02 each. 3. This transaction indicates a strategic long-term relationship between GigaMedia and Aeolus. 4. GigaMedia may consider further investments in Aeolus securities. 5. Forward-looking statements caution potential risks in future performance.
The strategic investment demonstrates confidence in Aeolus's potential growth, similar to past deals boosting stock value. For example, when companies invest in collaborative technology efforts, stock prices often reflect increased investor optimism.
The investment represents GigaMedia's strategic direction and potential revenue streams, which can directly influence investor sentiment and stock price. Partnerships, especially in tech innovation, tend to attract positive attention from investors.
Strategic relationships typically yield long-term growth; historical investments suggest increased value over time. Similar situations in tech investments have shown gradual positive market responses as partnerships evolve.
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.
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.
SOURCE GigaMedia