Core Scientific이 1억2,500만 달러 규모 채권 발행을 가격 책정하면서 주가가 매도세에 휩싸였으나, 경영진은 이를routine한 자본 재순환으로 해석했다.

Shares of Gorilla Technology (GRRR) slumped on Wednesday after the AI-powered software and infrastructure solutions company announced pricing details for a convertible note offering through which it plans to raise up to $125 million. At the time of writing, GRRR stock was down 26%, on track to hit its lowest level in two months, and had become the top-trending ticker on Stocktwits.

Under the terms of the private placement, investors holding a note worth $1,000 will receive 39.2425 ordinary shares at a conversion price of approximately $25.4826 per share, subject to adjustment upon the occurrence of certain events. The company stated that this initial conversion price represents a premium of about 52% over the stock’s last closing price on Tuesday. The notes will accrue interest at a rate of 7.50% per annum, payable semi-annually in arrears. Through convertible note offerings, companies typically gain quick access to capital at low interest rates, while investors have the option to convert their notes into equity down the line, potentially benefiting them if the stock price shoots up. Senior noteholders are prioritized in the event of bankruptcy and paid back first.

Gorilla said it will use the proceeds to add data center capacity at the NeutraDC Batam project in Indonesia and purchase necessary equipment, with any leftover funds utilized for general corporate purposes. In late June, the company struck a $2.5 billion, five-year contract with an unnamed customer to provide compute power to be supplied from the NeutraDC Batam project. At the time, the company said banks had already offered to cover 70% of the project costs. By bringing 1,000 B300 GPU servers online—a process expected to be completed by September this year—the company expects to earn roughly half of the anticipated revenue once Phase 1 is completed.

On Stocktwits, retail sentiment toward the stock turned “bullish” from “bearish” over the last 24 hours. One bullish user on the platform viewed the stock’s sell-off as a buying opportunity, while another highlighted that the company’s fundamentals are strong. GRRR stock has gained 13% so far this year, but has declined more than 40% over the last 12 months.