SCHMID Quantifies Up to 20% Dilution from Convertible Notes and Warrants
SHMD has more than doubled off its 52-week low of $2.
Summary
SCHMID Group's prospectus supplement quantifies potential dilution of 11-20% from its convertible notes, warrants, and options, while incorporating H1 2026 results showing a €47.8 million net loss and lowered full-year margin guidance.
Key Events · Financing and Capital Events · SHMD
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Up to 20% Dilution Quantified
At illustrative share prices of $5-$12, outstanding convertible notes, warrants, and options could add 9.3-14.9 million new shares, representing +11% to +20% dilution against 60,958,903 outstanding shares.
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H1 2026 Net Loss of €47.8M
Revenue reached €46.0M (up from €16.9M), but net loss widened to €-47.8M driven by non-cash effects from the XJ Harbour liability conversion and warrant fair-value movements.
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Full-Year Margin Guidance Cut
Adjusted EBITDA margin guidance lowered to 6-9% from over 12%, while revenue guidance of over €100 million and order intake guidance of €125-150 million were maintained.
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Earn-Out Shares at Risk of Cancellation
All 5,000,000 earn-out shares would be cancelled on April 30, 2027 if the share price does not reach $15 (2.5m shares) or $18 (2.5m shares) for 20 of 30 trading days — unlikely at the current $4.73 price.
Analysis · SHMD · Technology
The prospectus supplement puts hard numbers on the dilution overhang from SCHMID Group's aggressive 2026 recapitalization. At illustrative share prices of $5 to $12, the outstanding convertible notes, warrants, and options could add 9.3 to 14.9 million new shares — an 11% to 20% increase over the current 60.96 million shares outstanding. The company raised $20 million in 2029 convertible notes in July and still carries $11 million of 2028 notes, €2.5 million of a related-party convertible loan, and 21 million public/private warrants. The dilution math is compounded by the fact that the 2028 and 2029 notes convert at 95% and 97% of VWAP respectively, meaning holders are incentivized to convert at lower prices. Against this backdrop, H1 2026 showed a €47.8 million net loss driven largely by non-cash fair-value movements on the XJ Harbour liability conversion and warrant remeasurement — not operational cash burn, but a signal of how volatile the capital structure has become. The company's equity is negative (€-30.8 million), and it has already drawn $9 million of a $30 million standby equity purchase agreement. The filing also reveals that all 5 million earn-out shares will be cancelled on April 30, 2027 unless the stock reaches $15-$18, which at the current $4.73 price appears unlikely — a potential offset to dilution but also a sign of how far the stock has fallen from its SPAC-era targets.
How filings like this one have moved
In the 30 days to Aug 25, 2026, 37.4% of the 3413 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, SHMD was trading at $4.73 on NASDAQ in the Technology sector, with a market capitalization of approximately $345.8M. The 52-week trading range was $2.00 to $10.65. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.