SCHMID Group secures $30 million convertible notes financing

SCHMID Group N.V. (NASDAQ: SHMD) announced it entered into an investment agreement on January 18, 2026 with an institutional investor for $30 million in senior convertible notes and warrants in a private placement.

The notes will be issued at 98% of principal amount and funded in two $15 million tranches. The first tranche will be funded on January 21, 2026, while the second tranche will be funded following the effectiveness of a registration statement covering the resale of underlying shares.

The notes bear interest at 7% per annum, compounded quarterly and payable in kind, with a two-year maturity date of January 21, 2028. The notes are convertible at the investor's option into company shares at prices determined by reference to fixed premium conversion prices, including at 95% of the applicable volume-weighted average price, subject to a minimum conversion price and daily conversion limits.

The company will also issue warrants exercisable until December 15, 2028, at an exercise price equal to the lower of the applicable fixed premium conversion prices under the notes. The warrants can be exercised for cash or on a cashless basis at the company's election.

William Blair acted as sole placement agent for the financing. Net proceeds will be used for general corporate purposes, including working capital, capital expenditures, and potential acquisitions or investments.

As a result of this agreement, SCHMID will not draw the second €7.5 million tranche under its previously announced €10 million convertible loan facility from December 2025, citing more favorable commercial terms in the new investment agreement.

The company also completed a share issuance to XJ Harbour HK Limited on January 16, 2026, issuing 12,540,539 shares at $2.15 per share to settle $26.96 million in liabilities. Following this issuance, the company has 55.6 million shares outstanding, up from 43.06 million shares previously.

The Freudenstadt, Germany-based company provides solutions to high-tech electronics, photovoltaics, glass, and energy systems industries.

You May Also Be Interested In