Gorilla Technology Group Launches $125 Million Convertible Bond to Finance NeutraDC Batam Data Center in Indonesia

Details of the $125 Million Senior Unsecured Convertible Bond Offering

On July 15, 2026, Gorilla Technology Group Inc. announced pricing of $125 million in 7.50% Senior Unsecured Convertible Notes, Series B, due 2031. These bonds are privately placed with institutional investors under Section 4(a)(2) of the Securities Act of 1933, as amended, and remain unregistered under U.S. securities laws.

The offering is expected to close around July 17, 2026, subject to standard closing conditions. Additional information will be disclosed via a Form 6-K filing with the U.S. Securities and Exchange Commission. The bonds are issued at par value and rank as senior unsecured obligations.

Bond Features: Interest Rate, Maturity, and Payment Terms

The bonds carry a 7.50% annual interest rate, payable semi-annually in arrears, maturing on June 15, 2031, unless converted, redeemed, or repurchased earlier per terms. Issued at 100% principal amount, no original issue discount applies.

Interest payments may be made in cash or, at the company's discretion and subject to conditions, in ordinary shares, offering Gorilla flexibility in managing cash flow throughout the bond term. Specific conditions for share-based interest payments were not detailed.

Conversion Terms: Rate, Price, and Market Premium

The initial conversion rate is 39.2425 ordinary shares per $1,000 principal amount, equating to a conversion price of approximately $25.4826 per share. This price represents a 52% premium over the $16.77 closing price on July 14, 2026, the day before pricing.

The conversion price is adjustable upon certain events, with a downward reset floor at $8.00 and an upward reset cap at $31.85325 per share—90% above the July 14, 2026 closing price. These reset mechanisms add complexity but specific triggers were not elaborated.

Use of Funds: Financing NeutraDC Batam Data Center in Indonesia

Net proceeds will fund advance payments to secure committed data center capacity and initiate equity purchases of equipment for the NeutraDC Batam project, first announced on June 23, 2026. Remaining proceeds will support general corporate purposes. The company did not specify the exact allocation breakdown.

NeutraDC Batam Project and Gorilla’s Data Center Expansion Strategy

The NeutraDC Batam initiative, announced on June 23, 2026, marks Gorilla Technology’s push into data center infrastructure. Located in Indonesia’s Riau Islands near Singapore, Batam is a rising hub for data center investments due to its strategic location and land availability.

Gorilla Technology offers comprehensive solutions across Security Intelligence, Network Intelligence, Business Intelligence, IoT, and AI-powered infrastructure, serving sectors including government, manufacturing, telecom, retail, transportation, healthcare, and education.

Company Profile and Global Reach

Headquartered in London and listed on NASDAQ under ticker GRRR, Gorilla Technology is a global provider of AI-driven intelligence and infrastructure solutions spanning public and private sectors worldwide. The NeutraDC Batam project reflects its expanding infrastructure ambitions beyond software and AI offerings. Financial and operational metrics were not disclosed.

Regulatory Status and Resale Registration Commitment

The bonds and shares issuable upon conversion are unregistered under the Securities Act of 1933 and cannot be sold in the U.S. without registration or exemption. The announcement clarifies it is not an offer or solicitation to sell securities.

Gorilla has committed to filing a resale registration statement on Form F-3 with the SEC to register the resale of the bonds and underlying shares, facilitating liquidity for institutional investors. The filing timeline was not specified.

Forward-Looking Statements and Risk Disclosures

The announcement contains forward-looking statements under the Private Securities Litigation Reform Act safe harbor. Gorilla cautions actual outcomes may differ materially from projections regarding offering completion, closing timing, use of proceeds, bond terms, and project benefits.

Additional risk factors are detailed in the company’s Form 20-F filed April 15, 2026. Gorilla disclaims any obligation to update forward-looking statements except as required by law.

Share Price Reference and Conversion Premium Analysis

The initial conversion price of $25.4826 per share is set against the July 14, 2026 closing price of $16.77, reflecting a 52% premium. The upward reset cap at $31.85325 per share represents a 90% premium. The immediate market impact was not evident at the time of reporting.

The $8.00 conversion floor provides a significant downside threshold relative to the reference price. Specific conditions triggering price resets were not disclosed beyond general adjustment provisions.

SEC Filings and Ongoing Disclosure Obligations

Gorilla will file a Form 6-K with the SEC containing further details on the private placement, consistent with its status as a foreign private issuer on NASDAQ. The Form 6-K supplements annual and interim reports.

The company also plans to file a Form F-3 resale registration statement covering the bonds and conversion shares, ensuring transparency and liquidity for investors. Filing deadlines were not provided.