Sivers Semiconductors is throwing everything at its balance sheet this summer — and the market is punishing it for it. The Swedish photonics and mmWave specialist has converted a $12 million convertible loan into equity, separately raised 700 million Swedish kronor through a directed share issue, and is actively preparing a dual listing on the Nasdaq. Yet the share price has fallen by roughly 17% in a single session, with the stock now trading at around €4.30, extending a slide that has wiped out nearly 58% from its early-June peak of €10.23.
Investors are grappling with a swift 6.4% dilution from the debt-for-equity swap alone, and the cumulative impact of two capital events within days has overwhelmed any positive signals from the company’s growth plans.
Debt Cut, Shares Issued
On 3 July 2026, Sivers announced that lender Bootstrap Europe IV SCSp had exercised its right to convert a $12 million convertible note into 22,847,044 new ordinary shares. The move reduces the company’s debt burden and, according to CFO Heine Thorsgaard, “strengthens the balance sheet and creates room to capitalise on commercial opportunities in our core markets.” But for existing shareholders, the issuance pushed the total share count to 355,081,317, representing a dilution of roughly 6.4%.
That conversion came on the heels of a separate placement. On 30 June, the board approved a directed share issue that raised 700 million Swedish kronor (approximately €61 million). The offering, managed by Pareto Securities, was placed at a near-10% discount to the preceding closing price. Demand was robust — the order book was multiple times oversubscribed — with both new and existing institutional investors participating. CEO Vickram Vathulya described the outcome as “a vote of confidence in our strategy.”
The fresh capital is earmarked for expanding manufacturing capacity for indium phosphide lasers and optical amplifiers, technologies central to AI data centres and automotive LiDAR. Sivers also plans to beef up its sales force and accelerate R&D.
Unusual Exemption and Insider Lock-Up
Ordinarily, Sivers was barred from issuing new shares for 180 days after a financing round concluded in April. Pareto Securities granted a special exemption to allow the directed placement — an uncommon step that underscores the urgency behind the capital raise. In a bid to reassure the market, top executives, including CEO Vathulya, agreed to a lock-up on their own shares until mid-July.
Should investors sell immediately? Or is it worth buying Sivers Semiconductors?
The move came as the company faced headwinds in its core business. First-quarter revenue dropped 22% year-on-year, which management attributed to delays in the US defence budget and currency effects. Still, the pipeline of orders has swelled to nearly $800 million, and the company expects delivery volumes to pick up significantly from 2027.
At the annual general meeting in June, shareholders approved a zero-dividend policy for 2025 and endorsed a six-figure convertible loan carrying an interest rate of roughly 11%, running until the end of 2029.
Nasdaq Ambitions and Short-Term Pain
On 1 July, Sivers moved its Nasdaq listing plans from the evaluation phase into concrete implementation. The company expects a dual listing in Stockholm and New York between late 2026 and early 2027, a move designed to boost international visibility and open access to a broader investor base.
For now, though, the technical picture is alarming. The stock has shed more than 30% over the past week and is trading nearly a third below its 50-day moving average. The relative strength index at 36.9 points to oversold conditions, but the annualised volatility of roughly 219% suggests that any recovery could be equally turbulent.
Investors appear to be weighing the fresh cash injection against the dilution and the cash burn required to reach commercial scale. Whether the share price can stabilise depends on how quickly the market shifts its focus from the swelling share count to the potential of the expanded capacity and the Nasdaq debut.
Ad
Sivers Semiconductors Stock: Buy or Sell?! New Sivers Semiconductors Analysis from July 6 delivers the answer:
The latest Sivers Semiconductors figures speak for themselves: Urgent action needed for Sivers Semiconductors investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from July 6.
Sivers Semiconductors: Buy or sell? Read more here...
