Smartbird warns most convertible-note funding remains optional

Smartbird, formerly Allbirds, says only the initial $8.25 million of its convertible-note facility has been invested, while the remaining $91.75 million is solely at noteholders' option. In its quarterly SEC filing, the company warns it may run out of cash without additional funding. Smartbird says it has sold all assets of its historical business and is operating a new AI infrastructure business. It calls that business speculative and unproven, and says execution depends on obtaining substantial capital. The company relies on third-party data centers for power, cooling, space and connectivity.