Nano Labs Ltd (NASDAQ: NA) witnessed a significant surge in its stock price, climbing 36.36% to close at $14.85. This sharp upswing followed the company’s announcement of a major equity-related development. Nano Labs disclosed that it had entered into a convertible notes purchase agreement, under which the company would issue convertible promissory notes totaling an aggregate principal amount of US$500 million to a group of investors.
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Convertible Notes to Fuel Growth Ambitions
The promissory notes, which carry no interest, will mature 360 days after issuance. During this period, investors can convert the notes, either fully or partially, into Class A ordinary shares of Nano Labs at an initial conversion rate of US$20 per share. This rate is subject to adjustment as outlined in the agreement.Should the notes remain unconverted, Nano Labs will repay the principal on the maturity date.
Notably, these notes will represent unsecured general obligations of the company. The closing of the agreement is contingent upon standard conditions and has not yet been finalized. The company emphasized that investors should not assume the transaction will close entirely or at all based on this announcement alone.
Strategic Investment in BNB and Stablecoin Initiatives
As part of its strategic direction, Nano Labs revealed its intention to evaluate the security and value proposition of Binance Coin (BNB). The company plans to acquire up to US$1 billion worth of BNB through a combination of private placements and convertible note mechanisms. In the long term, Nano Labs seeks to hold between 5% and 10% of BNB’s circulating supply.
Expanding into Stablecoins and Web3 Development
Nano Labs intends to apply for the required permits to run stablecoin companies employing the Hong Kong dollar and offshore renminbi in tandem with the Hong Kong Stablecoins Bill.
Additionally, Nano Labs plans to provide a strong technological foundation for the deployment of stablecoins on well-known blockchain networks, like Binance Coin and Bitcoin, setting itself up to be a key player in the growth of the stablecoin infrastructure and the larger Web 3.0 ecosystem through strategic partnerships.
