EdgeMode Announces Strategic Portfolio Review and Advancement of AI Data Center Development Pipeline in Spain

Core Insights - EdgeMode, Inc. has announced the results of an internal review regarding legacy agreements and provided updates on its AI Data Center development in Spain [1] Internal Review of Legacy Agreements - The company identified issues in a share exchange agreement completed earlier this year and intends to pursue rescission based on newly discovered information [2] - The potential impact of this rescission represents less than 5.5% of the company's total AI data center development portfolio, which is currently 1.8 GW of gross capacity in Spain [3] Anti-Dilutive Effects of Pending Rescission Actions - The Board has terminated approximately 385 million unexercised stock options, eliminating 12.8% of potential dilution immediately [4] - If rescission is completed, the company expects to return up to 1.56 billion shares previously issued under the agreement to treasury [4] - These actions could collectively eliminate over 50% of potential and outstanding dilution, significantly increasing shareholder ownership percentage [5] Spain AI Data Center Development Portfolio Continues to Advance - The strategic AI Data Center portfolio in Spain, with a 1.5 GW IT development capacity, remains intact and is progressing on schedule [6] - The company anticipates announcing multiple milestones related to permitting approvals, power procurement, design and engineering updates, and early-stage client engagements in the coming quarters [6] Governance Measures to Support Stability - To ensure continuity during the transition, the company has established a Series D preferred class of stock to provide governance stability, which has no economic dilution effect on common stockholders [6] CEO Comment - The CEO stated that the steps taken strengthen the capital structure and allow the company to focus on advancing its AI Data Center development pipeline in Spain, positioning the company securely for future growth [7]