Nano Labs Ltd announces a $500 million convertible notes agreement to enhance strategic growth and assess BNB security and value.
Quiver AI Summary
Nano Labs Ltd, a prominent Web 3.0 infrastructure provider in China, announced a convertible notes purchase agreement to issue $500 million in convertible promissory notes to various investors. These notes will mature in 360 days with no interest and are convertible into the company's Class A ordinary shares at an initial price of $20 per share. Nano Labs plans to acquire $1 billion worth of Binance Coin (BNB) through this deal and private placements, aiming to eventually hold 5% to 10% of BNB's total supply. The company is focused on developing high-performance computing and high-throughput computing chips, with several other business initiatives outlined in its integrated solution platform. The closing of the agreement is subject to customary conditions and is not guaranteed.
Potential Positives
- The Company has successfully secured a convertible notes purchase agreement worth US$500 million, indicating strong investor interest and confidence in its growth potential.
- The agreement allows investors to convert the notes into Class A ordinary shares, offering them potential equity in the Company and aligning interests with long-term growth.
- Nano Labs plans to acquire US$1 billion worth of BNB, positioning itself strategically within the cryptocurrency market and enhancing its asset portfolio.
- The initiative to hold 5% to 10% of BNB’s total circulating supply showcases Nano Labs' commitment to leveraging digital assets for future growth and stability.
Potential Negatives
- The issuance of convertible notes worth US$500 million raises concerns about the company's debt levels and potential dilution of existing shareholders upon conversion.
- The lack of guaranteed closing for the convertible notes may signal uncertainty in the company's financial situation, impacting investor confidence.
- The absence of interest on the notes could indicate the company's challenges in attracting investment under more favorable terms.
FAQ
What is the purpose of the convertible notes issued by Nano Labs Ltd?
The convertible notes aim to support Nano Labs' strategic growth and facilitate the acquisition of BNB.
How much is Nano Labs planning to raise through the convertible notes?
Nano Labs plans to raise US$500 million through the issuance of convertible promissory notes.
What is the initial conversion price for the convertible notes?
The initial conversion price for the convertible notes is set at US$20 per Class A ordinary share.
What percentage of BNB does Nano Labs aim to hold long-term?
Nano Labs aims to hold 5% to 10% of BNB's total circulating supply over the long term.
What types of chips is Nano Labs focused on developing?
Nano Labs is focused on developing high throughput computing (HTC) chips and high performance computing (HPC) chips.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$NA Insider Trading Activity
$NA insiders have traded $NA stock on the open market 6 times in the past 6 months. Of those trades, 3 have been purchases and 3 have been sales.
Here’s a breakdown of recent trading of $NA stock by insiders over the last 6 months:
- BARRY S STERNLICHT sold 811,079 shares for an estimated $17,421,976
- AUSTIN NOWLIN sold 11,743 shares for an estimated $252,239
- JOSEPH NIETO (Chief Financial Officer) sold 2,928 shares for an estimated $62,893
- GEORGE JR PAPPI (President of the Board and CEO) purchased 1 shares for an estimated $58,000
- RANDALL LLOYD HANSEN (Secretary) has made 2 purchases buying 10,000 shares for an estimated $54,200 and 0 sales.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
Full Release
HONG KONG, June 24, 2025 (GLOBE NEWSWIRE) -- Nano Labs Ltd (Nasdaq: NA) ("we," the "Company" or "Nano Labs"), a leading Web 3.0 infrastructure and product solution provider in China, today announces that it has entered into a convertible notes purchase agreement (the “Agreement”) under which the Company has agreed to issue, and several investors have agreed to subscribe for, a convertible promissory notes in the aggregate principal amount of US$500 million (the “Notes”).
The Notes will mature in 360 days following the issuance, with no interest accruing on the outstanding principal amount. During 360 days from the date of this Notes, the Notes are convertible, in whole or in part, into the Class A ordinary shares of the Company (the “Ordinary Shares”) at the option of the holder thereof. The conversion price is initially US$20 per Ordinary Share, subject to adjustment as set forth in the Notes. Unless previously converted, the Company shall repay the outstanding principal amount on the maturity date. The Notes shall be an unsecured general obligation of the Company.
The closing under the agreement is subject to customary closing conditions. There is no guarantee that closing will happen in full or at all. Investors should not place on due reliance on this press release.
The Agreement marks an important step in the Company’s strategic growth. As part of this initiative, Nano Labs will conduct a thorough assessment of the security and value of BNB. In the initial phase, the Company plans to acquire US$1 billion worth of BNB via convertible notes and private placements. Over the long term, Nano Labs aims to hold 5% to 10% of BNB’s total circulating supply.
About Nano Labs Ltd
Nano Labs Ltd is a leading Web 3.0 infrastructure and product solution provider in China. Nano Labs is committed to the development of high throughput computing (“HTC”) chips and high performance computing (“HPC”) chips. Nano Labs has built a comprehensive flow processing unit (“FPU”) architecture which offers solution that integrates the features of both HTC and HPC. In addition, it has established Bitcoin value investment and adopted Bitcoin as primary reserve asset. Nano Labs has established an integrated solution platform covering three main business verticals, including HTC solutions and HPC solutions. The HTC solutions feature its proprietary Cuckoo series chips, which have become alternative Application-Specific Integrated Circuit (“ASIC”) solutions for traditional GPUs. Nano Lab’s Cuckoo series are one of the first near-memory HTC chips available in the market*. For more information, please visit the Company’s website at: ir.nano.cn .
*According to an industry report prepared by Frost & Sullivan.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, the Company's plan to appeal the Staff's determination, which can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.
For investor and media inquiries, please contact:
Nano Labs Ltd
Email:
[email protected]
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email:
[email protected]
