Nano Labs converts $8.5 million loans into shares

HANGZHOU, China - Nano Labs Ltd (NASDAQ:NA), a prominent fabless integrated circuit design firm in China, has completed the conversion of $8.5 million in interest-free loans into Class A ordinary shares. The loans were provided by the company's chairman and CEO, Mr. Jianping Kong, vice chairman Mr. Qifeng Sun, and their affiliates.

The agreements for these loans were initially made on August 26 and September 6, 2024. The conversion terms stipulate that 27,914,614 Class A ordinary shares will be issued to the lenders at a per share price of $0.3045. This price is based on the average closing price over the 10 trading days leading up to September 19, 2024. With the conversion finalized today, Nano Labs is now free from any future liabilities or obligations associated with the loans.

Nano Labs is known for its development of high throughput computing (HTC) chips, high performance computing (HPC) chips, and various other distributed computing and storage solutions. Its Cuckoo series of HTC chips are among the first near-memory computing chips in the market, according to a report by Frost & Sullivan.

This conversion of loans into equity is part of the company's financial maneuvers, and it is a significant corporate action that alters the company's capital structure. It has been reported based on a press release statement from Nano Labs Ltd.

In other recent news, Nano Labs, a leader in advanced chip technology, reported mixed financial results for the first half of 2024. The company's net revenue declined to $3.47 million, primarily due to decreased sales of the iPollo V1 Series product. However, the company also reported significant growth in its 3D-printing product revenue and a 20.1% reduction in operating expenses.

In terms of product developments, Nano Labs launched the Cuckoo 3.0 chip, which is expected to drive future sales growth. The company is also expanding its Metaverse offerings and exploring opportunities in AI computing.

Despite a decrease in operating expenses, the company reported a net loss of $8.30 million. However, with the launch of machines equipped with Cuckoo 3.0 chips, increased sales are anticipated in the second half of the year. In addition, new product lines and photo studio services in the Metaverse are expected to contribute to future revenue. These recent developments underline Nano Labs' commitment to creating additional value for shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.