EdgeMode (OTC: EDGM) provided an update on its strategic direction, announcing the completion of an internal portfolio review alongside continued progress across its large-scale AI data center development pipeline in Spain.
The update highlights two parallel developments. On one hand, the company is addressing certain legacy arrangements identified during a routine review. On the other, it continues to advance a substantial AI infrastructure portfolio that remains fully intact and on track.
Internal Review Targets Legacy Arrangements
As part of its internal review, EdgeMode identified issues related to a share exchange agreement completed earlier this year. The company has issued notice of its intention to pursue rescission of that agreement based on recently discovered information. While the process may require formal and judicial steps, EdgeMode has already initiated actions to unwind the transaction.
Importantly, the potential impact of the agreement represents less than 5.5 percent of EdgeMode’s overall AI data center development portfolio, which totals approximately 1.8 gigawatts of gross capacity in Spain.
Steps Taken to Protect Shareholder Value
The company also outlined steps taken to strengthen its capital structure. As part of the review, EdgeMode’s board terminated roughly 385 million unexercised stock options, immediately eliminating 12.8 percent of potential dilution.
If the rescission process is completed, EdgeMode expects that up to 1.56 billion shares previously issued under the agreement could return to treasury. If finalized, these actions would collectively remove more than half of the company’s potential and outstanding dilution, increasing ownership concentration for existing shareholders.
Spain AI Data Center Portfolio Continues to Advance
While addressing legacy matters, EdgeMode emphasized that its core business remains unchanged. The company’s AI data center development portfolio in Spain, representing approximately 1.5 gigawatts of IT capacity, remains fully intact and continues to move forward.
Management expects to provide updates in the coming quarters across several areas, including permitting approvals, power procurement, design and engineering progress, and early-stage client engagement. The portfolio positions EdgeMode among the largest AI-focused data center developers in Europe.
Governance Measures Support Stability
To ensure continuity during the review process, EdgeMode established a Series D preferred class of stock to provide governance stability. The company noted that this structure has no economic dilution impact on common shareholders and is intended to support consistent oversight during a period of structural adjustment.
Management Perspective
Chief Executive Officer Charlie Faulkner said the actions taken strengthen the company’s capital structure and allow management to remain focused on execution.
“The steps we have taken strengthen our capital structure and allow us to focus fully on advancing our AI data center development pipeline in Spain,” Faulkner said. “Our intention is to ensure the Company is positioned securely for the next phase of growth, and we look forward to sharing further updates as milestones are achieved.”
Positioned for the Next Phase
EdgeMode continues to focus on developing scalable, AI-ready data center campuses supported by integrated energy infrastructure. As demand for AI and high-performance compute capacity accelerates across Europe, the company’s emphasis on power-secured development and disciplined portfolio management remains central to its strategy.
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