Nano Labs Announces Closing of US$36.25 Million Private Placement

Rhea-AI Summary

Nano Labs (Nasdaq: NA) has successfully closed its previously announced private placement, raising US$36.25 million through the sale of 5,611,459 Class A ordinary shares at US$6.46 per share. The aggregate purchase price was paid using a combination of U.S. dollars, Bitcoin, and USDT. The transaction was conducted as an unregistered offering under Section 5 of the Securities Act.

Positive

• Secured significant funding of US$36.25 million through private placement
• Demonstrates ability to attract investor interest and raise capital
• Flexible payment structure accepting both traditional (USD) and crypto currencies

Negative

• Potential dilution of existing shareholders due to issuance of new shares

Insights

Financial Analyst

The successful completion of this $36.25M private placement significantly strengthens Nano Labs' balance sheet and demonstrates investor confidence in the company's business model. The unique aspect of this deal is the acceptance of both traditional (USD) and digital currencies (Bitcoin and USDT) as payment, reflecting the company's position in the cryptocurrency and blockchain ecosystem. The share price of $6.46 per share for 5,611,459 Class A ordinary shares provides substantial capital for potential expansion and R&D initiatives in their IC design business. This funding round could accelerate their market position in China's semiconductor industry, particularly in developing specialized chips for emerging technologies. However, investors should note the potential dilutive effect on existing shareholders and monitor how effectively management deploys this capital.

Crypto Market Analyst

The acceptance of Bitcoin and USDT as payment methods in this private placement is a strategic move that aligns with Nano Labs' involvement in blockchain technology. This hybrid funding approach bridges traditional finance with crypto markets, potentially attracting both conventional institutional investors and crypto-native capital. The structure of this deal could set a precedent for future fundraising in the semiconductor industry, especially for companies developing blockchain-related hardware. The successful closing indicates strong investor appetite for companies at the intersection of hardware development and blockchain technology, particularly in the Chinese market where demand for specialized chips remains robust.

HONG KONG, Dec. 11, 2024 /PRNewswire/ -- Nano Labs Ltd (Nasdaq: NA) ("we," the "Company" or "Nano Labs"), a leading fabless integrated circuit design company and product solution provider in China, today announced the closing of its previously announced private placement of 5,611,459 Class A ordinary shares at a purchase price of US$6.46 per share, for aggregate gross proceeds of approximately US$36.25 million. As previously disclosed, the aggregate purchase price was satisfied in U.S. dollars, Bitcoin and USDT. The shares were offered in a transaction not required to be registered under Section 5 of the Securities Act.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Nano Labs Ltd

Nano Labs Ltd is a leading fabless integrated circuit ("IC") design company and product solution provider in China. Nano Labs is committed to the development of high throughput computing ("HTC") chips, high performance computing ("HPC") chips, distributed computing and storage solutions, smart network interface cards ("NICs") vision computing chips and distributed rendering. Nano Labs has built a comprehensive flow processing unit ("FPU") architecture which offers solution that integrates the features of both HTC and HPC. Nano Lab's Cuckoo series are one of the first near-memory HTC chips available in the market*. For more information, please visit the Company's website at: ir.nano.cn.

* According to an industry report prepared by Frost & Sullivan.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, the Company's plan to appeal the Staff's determination, which can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

For investor inquiries, please contact:

Nano Labs Ltd
ir@nano.cn 

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

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SOURCE Nano Labs Ltd

FAQ

How much did Nano Labs (NA) raise in its December 2024 private placement?

Nano Labs raised US$36.25 million through the private placement of 5,611,459 Class A ordinary shares.

What was the price per share for Nano Labs' (NA) private placement?

The purchase price was US$6.46 per Class A ordinary share.

What payment methods were accepted in Nano Labs' (NA) private placement?

The purchase price was satisfied through a combination of U.S. dollars, Bitcoin, and USDT.

How many new shares did Nano Labs (NA) issue in the private placement?

Nano Labs issued 5,611,459 Class A ordinary shares in the private placement.