Allbirds shares soared 200% following the company’s announcement of a $50 million convertible financing facility and plans to pivot its business to AI compute infrastructure.

The footwear company disclosed it has executed a definitive agreement with an institutional investor for the financing facility, which is expected to close during the second quarter of 2026. The company said it intends to transition its business to become a GPU-as-a-Service and AI-native cloud solutions provider, planning to change its name to "NewBird AI."

The announcement comes after Allbirds previously disclosed a definitive agreement to sell its brand and footwear assets to American Exchange Group. The company said conversion of the financing facility requires stockholder approval at a Special Meeting scheduled for May 18, 2026, for stockholders of record as of April 13, 2026.

Subject to stockholder approval of the asset sale, Allbirds said it anticipates issuing a special dividend during the third quarter of 2026 to stockholders of record as of May 20, 2026.

Under the planned structure, the Allbirds brand would continue under American Exchange Group’s ownership, while investors holding shares as of the dividend record date would receive a special dividend. Shareholders who retain their positions would hold stock in the AI compute infrastructure business.

Chardan is serving as placement agent on the facility, with Holland & Hart LLP acting as legal counsel to Allbirds.