Key HighlightsShares of GRRR declined 28% following the announcement of a $125M convertible note issuance.The company issued 7.50% senior unsecured convertible notes maturing in 2031.Funds raised will primarily support the NeutraDC Batam facility development in Indonesia.The conversion price reflects a 52% premium to the July 14 share price.Gorilla intends to file for SEC registration covering resale of the securities and underlying shares.Shares of Gorilla Technology Group Inc. (GRRR) experienced significant downward pressure on July 15, tumbling 28.38% to settle at $12.01. The steep decline followed the company’s disclosure of a substantial $125 million convertible debt financing. Trading volume spiked during early hours as investors reacted to the dilutive capital raise, with the stock finding support only near session lows.Gorilla Technology Group Inc., GRRRCompany completes $125 million convertible debt placementGorilla Technology Group revealed the successful pricing of $125 million in 7.50% Senior Unsecured Convertible Notes, Series B, scheduled to mature in 2031. The securities were sold through a private placement targeting qualified institutional purchasers pursuant to Section 4(a)(2) of the Securities Act. The transaction is anticipated to finalize on July 17, 2026, pending standard closing requirements.These debt instruments will constitute senior unsecured claims against the company and reach maturity on June 15, 2031. The notes bear interest at 7.50% annually, with semi-annual payments made in arrears. Subject to meeting certain criteria, Gorilla retains the option to satisfy interest obligations through either cash payments or issuance of common stock.The notes were priced at par value, representing 100% of principal. Gorilla indicated it will provide comprehensive terms through a forthcoming Form 6-K submission to the Securities and Exchange Commission. The instruments have not been registered under federal securities laws and rely on exemptions from registration mandates.Conversion terms include adjustable pricing mechanismsThe debt securities feature an initial conversion ratio of 39.2425 ordinary shares per $1,000 of principal value. This translates to an opening conversion price of approximately $25.48 per share. The established conversion threshold sits roughly 52% higher than the company’s closing price of $16.77 on July 14.The conversion framework incorporates dual reset provisions. The first mechanism enables downward price adjustments with a floor of $8.00 per share. The second provision allows upward recalibration capped at $31.85325 per share.These modification features activate under predetermined conditions throughout the instrument’s duration. The conversion design balances adaptability with defined boundaries at both extremes. Additionally, Gorilla committed to pursuing resale registration for both the notes and any shares issued through conversion via a subsequent Form F-3 registration statement.Capital allocation targets Indonesian infrastructure buildoutThe bulk of the raised capital will be directed toward advancing the company’s NeutraDC Batam development in Indonesia. Specifically, funds will be allocated to secure reserved data center capacity through prepayments. The company will also utilize proceeds to cover the equity component of equipment acquisitions necessary for facility operations.The NeutraDC Batam initiative represents a key component of Gorilla’s infrastructure expansion roadmap unveiled during June 2026. Consequently, this financing round supports the strategic objectives previously communicated to stakeholders. Any surplus capital following designated project expenditures will be allocated to working capital and general corporate needs.Gorilla maintains worldwide operations spanning security intelligence, network intelligence, business intelligence, IoT technologies, and data center solutions. The firm continues building out its infrastructure capabilities while executing on extended-timeline technology initiatives. The pronounced stock depreciation underscored investor concerns regarding the magnitude of potential dilution, notwithstanding management’s growth-oriented rationale for the capital raise. The post Gorilla Technology Group (GRRR) Stock Tumbles 28% Following $125M Convertible Notes Deal appeared first on Blockonomi.