Substrate AI will submit for a vote at its next general shareholders' meeting, scheduled for June 29 and 30, an operation to issue up to 40 million euros in convertible bonds with a maturity of three years, as communicated by the company.
The Spanish artificial intelligence firm, listed on BME Growth, has published the notice of the meeting this month, at which it will also decide on the annual accounts for 2025 and other agreements considered key for the group's future development.
According to the documentation submitted, Substrate AI is in talks with several investors to formalize an issuance and subscription agreement for up to 800 convertible bonds, with a maximum aggregate nominal amount of 40 million euros, which may be subscribed within a twenty-four-month commitment period.
These securities will accrue an annual interest of 7% and will mature three years from the signing of the contract, so their conversion into shares will not be possible before that time.
The conversion price will be determined based on 80% of the weighted average trading price of the thirty trading days prior to the date on which the conversion is executed.
With this structure, the operation is designed to shore up Substrate AI's balance sheet and provide the company with additional funds to drive its growth, while reducing the immediate dilutive effect for current shareholders.
"Consequently, the company is in a privileged position to capitalize on this favorable AI environment," according to the independent expert who signed the report issued in relation to the operation.
Specialists emphasize that the convertible bond financing route allows for strengthening the capital structure without generating instant dilution for current partners, while providing the company with resources to accelerate its business plan, expand its activity, reinforce R&D investment, incorporate high-level technological talent, and consolidate its competitive position in the market.
With this issuance in preparation, Substrate AI seeks to face a new stage of growth and expansion amidst the boom in the artificial intelligence sector, both in Europe and globally.