Gorilla Technology Group Inc. (NASDAQ:GRRR) shares are trading lower Wednesday after the company announced the pricing of its $107 million offering.
- Gorilla stock is feeling bearish pressure. What’s behind GRRR decline?
Gorilla Prices $107 Million Convertible Bond Offering
The bonds will be issued at 100% of their principal amount, accrue interest at 7.50% per year and mature on June 5, 2031, unless earlier converted, redeemed or repurchased. Interest will be payable semi-annually in arrears in cash or, at the company’s election and subject to certain conditions, ordinary shares.
The initial conversion rate for the bonds will be 39.2425 ordinary shares per $1,000 principal amount, equivalent to an initial conversion price of approximately $25.48 per share. The company said the conversion price represents a premium of approximately 17% over its June 2 closing price of $21.78 per share.
Gorilla noted that the conversion price is subject to both downward and upward reset mechanisms. The downward reset carries a floor of $6.00 per share, while the upward reset is capped at $31.85325 per share.
The company said it intends to use the net proceeds from the offering to fund the equity portion of purchases of data center equipment deployment under its second project with Yotta Data Services Private Limited. Any remaining proceeds will be used for general corporate purposes.
The company said the financing is being led by Highbridge Capital Management LLC, an existing institutional stakeholder in Gorilla. The offering is expected to close on or about June 5, 2026, subject to customary closing conditions.
Benchmark, a StoneX Company and StoneX Financial are serving as joint placement agents for the offering.
Gorilla Shares Fall
GRRR Price Action: At the time of publication, Gorilla shares are trading 18.27% lower at $17.80, according to data from Benzinga Pro.
This illustration was generated using artificial intelligence via Midjourney.
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