Following a late March announcement that it had entered into a definitive agreement to sell the Allbirds brand and footwear assets to American Exchange Group (AEG), Allbirds, Inc. has executed on a definitive agreement with an institutional investor for a $50 million convertible financing facility. AEG intends to continue to deliver footwear product to Allbirds’ customers.
The Facility, which is expected to close during the second quarter of 2026, will reportedly “enable the company to pivot its business to AI compute infrastructure, with a long-term vision to become a fully integrated GPU-as-a-Service (GPUaaS) and AI-native cloud solutions provider. In connection with this pivot, the company plans to change its name to “NewBird AI.”
The company filed proxy materials associated with the transition on Wednesday, April 15, with the Securities and Exchange Commission (SEC). In the filing, the company said that conversion of the Facility is subject to stockholder approval at its upcoming Special Meeting of Stockholders, scheduled to take place on May 18, 2026, for stockholders of record as of April 13, 2026.
Additionally, subject to stockholder approval of the Asset Sale, Allbirds, Inc. anticipates issuing a special dividend during the third quarter of 2026 to stockholders of record as of the anticipated dividend record date of May 20, 2026.
As a result of these transactions, the Allbirds brand and legacy will continue under the ownership of American Exchange Group for the benefit of all of its customers. As of the dividend record date, investors will receive a special dividend, and investors who elect to continue holding NewBird AI stock will be invested in a new AI compute infrastructure business supported by the Facility.
Chardan is serving as placement agent on the Facility, and Holland & Hart LLP is acting as legal counsel to Allbirds.
Image courtesy Allbirds
See below for additional SGB Media coverage of the Allbirds acquisition:
