Drops 28% After $125M Convertible Bond Offering

TLDR

• GRRR stock drops 28% after announcing a $125M convertible bond offering.

• Gorilla prices 7.50% convertible notes due 2031 in private placement.

• Bond proceeds will fund the NeutraDC Batam data center project.

• Convertible notes carry a 52% premium over the July 14 closing price.

• Company plans SEC resale registration for bonds and conversion shares.

Gorilla Technology Group Inc. (GRRR) shares fell sharply on July 15 after the company announced a $125 million convertible bond offering. The stock dropped 28.38% to close at $12.01 following heavy selling early in the trading session. The shares later stabilized near the day’s lows as the market absorbed the financing announcement.

Gorilla Technology Group Inc., GRRR

Gorilla prices $125 million convertible bond offering

Gorilla Technology Group announced the pricing of $125 million in 7.50% Senior Unsecured Convertible Notes, Series B, due in 2031. The company structured the transaction as a private placement for institutional buyers under Section 4(a)(2) of the Securities Act. The offering is expected to close on July 17, 2026, subject to customary closing conditions.

The bonds will rank as senior unsecured obligations and will mature on June 15, 2031. They will carry a 7.50% annual interest rate, payable every six months in arrears. Gorilla may pay interest in cash or ordinary shares if specific conditions are satisfied.

The company issued the bonds at 100% of their principal value. Furthermore, Gorilla plans to disclose additional details through a Form 6-K filing with the U.S. Securities and Exchange Commission. The securities remain unregistered under the Securities Act and qualify for an exemption from registration requirements.

Bond terms provide conversion flexibility

The bonds carry an initial conversion rate of 39.2425 ordinary shares for every $1,000 principal amount. That rate equals an initial conversion price of about $25.48 per ordinary share. The conversion price represents a premium of approximately 52% above Gorilla’s July 14 closing price of $16.77.

The conversion structure also includes two separate reset mechanisms. One allows a downward adjustment with a minimum conversion price of $8.00 per share. The second permits an upward adjustment with a maximum conversion price of $31.85325 per share.

These adjustment mechanisms apply if specified events occur during the bond’s life. The conversion terms provide flexibility while setting clear lower and upper limits. Gorilla also agreed to register the resale of both the bonds and any shares issued upon conversion through a future Form F-3 filing.

Proceeds support Indonesia data center expansion

Gorilla plans to use most of the proceeds to advance its NeutraDC Batam project in Indonesia. The funding will secure committed data center capacity through advance payments. The company will finance the equity portion of data center equipment purchases required for deployment.

The NeutraDC Batam project forms part of Gorilla’s broader infrastructure expansion strategy announced in June 2026. Therefore, the latest financing aligns with previously disclosed growth plans. Any remaining proceeds will support general corporate purposes after the planned project spending.

Gorilla operates globally across security intelligence, network intelligence, business intelligence, Internet of Things technology, and data center solutions. The company continues expanding its infrastructure business while pursuing long-term technology projects. Meanwhile, the sharp stock decline reflected the market’s response to the sizable convertible financing despite its intended growth-focused use.