Guardforce AI Co Ltd (NASDAQ:GFAI) said it has wrapped up a strategic debt-to-equity conversion, bolstering the company's financial position.
The company converted $13.4 million of debt and $2.5 million of accrued and unpaid interest into 2,947,150 restricted ordinary shares at a conversion price of $5.40 per share, representing a 75% premium to the closing price of the company's shares on the previous day.
Lei (Olivia) Wang, CEO of Guardforce AI, called the conversion a “strategic move” to strengthen the firm’s balance sheet as it develops its robotic solutions as well as supporting its secured logistics business.
“The lender has been our long-term partner since the company's inception and has consistently supported our business development efforts,” the CEO said in a statement.
“With the conversion price set at a substantial premium to our current share price, we believe this transaction further demonstrates the lender’s confidence in our business outlook."
The conversion allowed the company to proactively address and satisfy next year's large debt maturity while significantly reducing overall leverage, according to Wang.
In the first half of 2023, Guardforce AI had already raised approximately $23 million in gross proceeds.
New York-based Guardforce AI is a global security solutions provider, building on its legacy secured logistic business, while expanding to integrated AI and Robot-as-a-Service (RaaS) business.