Street Calls of the Week
NEW YORK - Univest Securities, LLC announced Thursday the closing of a $15 million registered direct offering for its client Zeta Network Group (NASDAQ:ZNB), an entertainment and education company. According to InvestingPro data, ZNB currently has a market capitalization of just $3.99 million and has shown significant revenue growth of 67% in the last twelve months.
Under the terms of the securities purchase agreement, Zeta Network Group sold 15 million Class A ordinary shares at $1.00 per share to certain investors. The offering also included pre-funded warrants with an identical purchase price less the exercise price of $0.0025 per share. The stock currently trades at $1.86, and InvestingPro analysis suggests the stock may be undervalued based on its Fair Value assessment, despite experiencing a dramatic 97% decline year-to-date.
Univest Securities acted as the sole placement agent for the transaction, which was conducted pursuant to a shelf registration statement previously filed and declared effective by the SEC on August 28, 2024.
Zeta Network Group, formerly known as Color Star Technology Co., Ltd. until its name change in August 2025, provides online entertainment performances and music education services through its subsidiaries Color Metaverse Pte. Ltd. and CACM Group NY, Inc.
The company operates the Color World music and entertainment education platform as part of its online education services.
The registered direct offering was made through a final prospectus supplement and accompanying prospectus filed with the SEC.
This announcement follows Univest Securities’ track record of capital raising, having reportedly raised over $1.5 billion for issuers globally since 2019, according to the press release statement.
In other recent news, Zeta Network Group announced a $15 million registered direct offering, selling 15,000,000 Class A ordinary shares at $1.00 per share. This offering is expected to close around October 9, 2025, with the potential for investors to receive pre-funded warrants instead of shares. Additionally, Zeta Network Group has formed a strategic partnership with SOLV Foundation, a multi-chain Bitcoin liquid staking platform managing $2.5 billion in total value locked. This collaboration will allow Zeta to utilize SOLV’s platform for managing its Bitcoin holdings under a regulated third-party custodian. The partnership includes a joint steering committee to develop Bitcoin-centric decentralized finance initiatives. Furthermore, the company, previously known as Color Star Technology Co., Ltd., has changed its name to Zeta Network Group and its stock ticker to "ZNB." A 25-for-1 reverse share split of its Class A and Class B ordinary shares will also be implemented, reflecting its new business strategy focused on cryptocurrency mining operations.
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