Nano Labs Signs $500M Convertible Notes Deal With Investors
Nano Labs Ltd., a Web 3.0 infrastructure provider based in China, announced on Tuesday that it has signed a convertible note purchase agreement worth $500 million with a group of unnamed investors. The agreement allows investors to subscribe to unsecured convertible promissory notes issued by the company. The notes, which carry no interest, will mature 360 days after issuance. Holders of the notes may convert all or part of the principal into Nano Labs’ Class A ordinary shares at an initial conversion price of $20 per share. The conversion rate may be adjusted according to the terms set forth in the agreement. Nano Labs is listed on the Nasdaq exchange under the ticker symbol “NA.” The notes are described as unsecured general obligations of Nano Labs, meaning they are not backed by company assets. According to the company, repayment of the full principal amount will be required on the maturity date if the notes are not converted. The transaction’s completion is subject to customary closing conditions, which have not been specified in detail. Nano Labs noted in its announcement that there is no certainty that the closing will take place, either partially or in full. The company also cautioned investors against placing undue reliance on the disclosure. The company did not identify the participating investors or specify when the notes would be issued. Strategic Plans Include BNB Acquisition As part of a broader strategic plan tied to the agreement, Nano Labs said it will evaluate the security and valuation of BNB, the cryptocurrency issued by Binance. In the initial stage of this plan, the company intends to acquire up to $1 billion in BNB through a combination of convertible notes and private placements. Nano Labs also stated a long-term goal of holding between 5% and 10% of BNB’s total circulating supply, although it did not provide a timeline for reaching that target. The company did not disclose how the proposed BNB acquisition aligns with its current financial resources or how it plans to finance purchases beyond the current $500 million in convertible notes. Nano Labs has described itself as a provider of infrastructure products and services designed to support Web 3.0 development. The company is headquartered in China and trades publicly in the United States.
