TAIPEI, Aug. 31, 2020
/PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced
that, on August 31, 2020, the Company
has entered and executed an convertible note purchase agreement to
acquire ownership of US$10,000,000
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 an interest rate of 2% per annum, shall be due
on August 30, 2022 but extendable to
August 30, 2023 at Aeolus' option,
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$3.00 per share, or into
preferred shares in Aeolus' nearest next round equity financing
where Aeolus issues further preferred shares, at a price equal to
the purchase price offered in such financing or with certain
discount. Assuming full conversion of the Note into ordinary
shares, GigaMedia would beneficially own 3,333,333 shares
representing, assuming the exercise or conversion of all other
rights, options and convertible securities, approximately 4.62% of
the total ordinary shares as of August 31,
2020.
The Note were purchased for strategic investment purposes.
GigaMedia continually reviews its investment alternatives and may
enter into additional transactions of Aeolus' securities from time
to time in accordance with applicable laws.
Information on Aeolus and Investment Rationale
Aeolus Robotics Corporation, a private company incorporated in
Cayman with subsidiaries and offices in Asia, Europe
and the U.S., is an R&D company engaged in developing
AI-enabled service robots.
AI and robot are believed to be two game changers for future
businesses. The global industrial and service robot market is
projected to grow rapidly in a few years, and Aeolus, leveraging
its technical finesse and strategic investor relationships, is
ready for entering elderly-care robot markets in Japan and other rapidly aging countries.
Aeolus is founded and led by Tsun-Yie
Alexander Huang, a former regional director of Microsoft in
Greater China; along with several
prominent AI scientists and roboticists.
The issuance of this Note provided Aeolus its much-needed
working capital, and through this funding, GigaMedia will explore
possibilities of further strategic cooperation with Aeolus.
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 2020.
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SOURCE GigaMedia Limited