Nano Labs to raise $50 million through share offering

HONG KONG - Nano Labs Ltd (NASDAQ:NA), a technology company with a market capitalization of $252.79 million and demonstrating impressive gross profit margins of 55.47%, announced Thursday it has entered into a securities purchase agreement with institutional investors to raise approximately $50 million through a registered direct offering and concurrent private placement. According to InvestingPro analysis, the stock has shown significant volatility and currently trades above its Fair Value.

The Web 3.0 infrastructure provider will sell 5,952,381 Class A ordinary shares at an effective price of $8.40 per share. In a concurrent private placement, the company will issue warrants to purchase an equal number of shares, exercisable at $10.00 per share and valid for five years. The company’s stock has delivered an impressive 156.73% return over the past year, though InvestingPro data shows it remains unprofitable over the last twelve months.

According to the company’s statement, proceeds from the offering will be used to acquire Binance Coin (BNB) as part of Nano Labs’ digital asset strategy.

Maxim Group LLC is serving as the sole placement agent for the transaction, which is expected to close around Friday, June 27, subject to customary closing conditions.

The ordinary shares are being offered through a shelf registration statement previously declared effective by the Securities and Exchange Commission. The warrants and shares issuable upon exercise will be offered in a private placement under Section 4(a)(2) of the Securities Act of 1933.

Nano Labs describes itself as a provider of high throughput computing and high performance computing chips in China. The company has adopted Bitcoin as its primary reserve asset.

This information is based on a press release issued by the company.

In other recent news, Nano Labs has announced a $500 million convertible notes private placement, marking a significant strategic move for the company. The notes, which mature in 360 days and do not accrue interest, can be converted into Class A ordinary shares at an initial price of $20 per share. This development is part of Nano Labs’ broader plan to acquire substantial holdings in the cryptocurrency BNB, with an initial acquisition target of $1 billion through convertible notes and private placements. The company aims to eventually hold between 5% and 10% of BNB’s total circulating supply. These recent developments indicate Nano Labs’ commitment to expanding its involvement in the cryptocurrency market. The completion of the convertible notes agreement is subject to customary conditions, and there is no guarantee that the transaction will be finalized.

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