Nano Labs Ltd (Nasdaq: NA) is a major player in the Web 3.0 infrastructure market in China, which has revealed that it has closed business on a $500 million private placement of convertible promissory notes.
The action is the next step in the company’s strategy to enhance its status in the crypto space with a dedicated Binance Coin (BNB) treasury program.
In the agreement, several investors will subscribe to convertible notes for $500 million principal amount. Such notes are a non-interest-bearing type, due to expiry 360 days after the date of their issue, and are convertible into Class A (ordinary shares) of Nano labs at the issue price of $20 per share is subject to adjustment provisions that are contained in the terms.
The notes shall be unsecured and be representative of general obligations of the company. Nano Labs will be obliged to reimburse the face value of the loan on maturity date unless otherwise converted sooner.
Although the transaction remains under customary closing conditions, the company stressed that the deal is under no obligation to close. The investors are recommended to view the risks accordingly.
Besides the capital raise, the overall strategy is to have Nano Labs evaluate the long-term security and value of BNB. The company plans on purchasing up to US$1 billion worth of BNB at the first stage using its analogous convertible instruments and privately held distribution.
The company eventually strives to have 5-10% of the total amount of the circulating supply of BNB in the end.
This is a sign that Nano Labs is gaining interest in blockchain-native assets and planning to create value by strategically managing its treasury of cryptocurrencies over the long term.
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