Debt Financing from a strategic investor will be used to accelerate production readiness following successful sampling and subsequent positive customer feedback
GCT Semiconductor Holding Inc. (“GCT”) (NYSE: GCTS), a leading designer and supplier of advanced 5G and 4G semiconductor solutions, today announced that it has entered into a term loan agreement (the “Debt Financing”) with Anapass, Inc., GCT’s largest shareholder and strategic investor. The Debt Financing provides for a fully funded senior secured term loan of approximately $10.7 million (KRW 15,000,000,000).
“We greatly value the continued support from Anapass, our largest shareholder,” said John Schlaefer, CEO of GCT. “This financing underscores confidence in the commercial launch of our 5G chipset and the significant growth opportunities ahead.”
The Debt Financing follows successful completion of 5G chipset sampling to GCT’s lead customers including Orbic North America and Airspan Networks. These samplings were validated by positive customer feedback, including recent announcement by Gogo and Airspan. GCT believes it is well-positioned for the imminent commercial product launch of its new 5G chipset.
Proceeds will be used to fund working capital requirements, including final production readiness and preparations for mass production and volume shipments of the 5G chipsets. GCT continues to target shipments of its 5G chipsets to begin in the fourth quarter of 2025.
The loan bears interest at an annual rate of 7.00%, payable monthly, and matures in one year.
