SCHMID Group (SHMD) said Wednesday that it has agreed to a $30 million private placement of senior convertible notes with an institutional investor, along with the issuance of warrants to purchase company shares.

The company said the financing will be funded in two $15 million tranches, with the first closing in late January 2026 and the second closing after a resale registration statement becomes effective.

The notes carry 7% annual interest and mature in January 2028, the company added.

SCHMID said proceeds will be used for general corporate purposes, including working capital, capital expenditures, and potential acquisitions.

As part of the transaction, SCHMID said it will forgo drawing a previously announced 7.5 million euros ($8.8 million) loan tranche, citing more favorable financing terms.