GigaMedia converts Aeolus convertible notes into 719 million Series C Preferred Shares

TAIPEI, June 16, 2026 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced that effective June 16, 2026, the Company has entered into and executed with Aeolus Robotics Corporation ("Aeolus") agreements of subscription of 719.09 million Aeolus Series C Preferred Shares by conversion and settlement of the convertible promissory notes issued by Aeolus and purchased by GigaMedia from September 2023 to February 2026, total principals amounting to US$12.37 million. The subscription consideration for the shares is equivalent to an average approximately US$0.0176 per share.

After the transaction, GigaMedia holds 719.83 million Aeolus preferred shares and the Company's ownership of Aeolus voting rights increased to approximately 33.35%. The investment in Aeolus securities is thereby accounted for under the equity method, whereas they were previously classified as available-for-sale, reported at fair value in GigaMedia's financial statements.

Information on Aeolus and Investment Rationale

Aeolus Robotics Corporation, a private company incorporated in Cayman Islands with subsidiaries and offices in East Asia, Europe and the U.S., is an R&D company engaged in developing AI-enabled service robots, specifically in elderly-care, night shift patrol, and UVC disinfection.

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 service robot markets in Japan, America and other countries that are experiencing severe labor shortages or high costs.

Aeolus is led by Richard Lee, also known as Lee, Tsung-Jung, has extensive experience in Taiwan's information technology industry, with senior executive roles spanning Acer, ASUS, Synology, QNAP, and Aeolus Robotics. He previously served as Vice President of ASUS Computer, General Manager of Synology, and President of QNAP, where he contributed to the development and commercialization of Taiwan technology products in global PC, storage, NAS, and IoT-related markets.

As of and for the year ended December 31, 2025, Aeolus reported the unaudited net loss of US$8.98 million with total assets of US$4.38 million.

The agreements were entered into for the purpose of strategically supporting the investee in its efforts of exploring AI-enabled service robots. 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.

More information on GigaMedia can be obtained from www.gigamedia.com.