Yimutian Inc. Raises US$1.5 Million in Second Convertible Note Closing

Yimutian Inc. Unsponsored ADR ( (YMT) ) just unveiled an update.

Yimutian Inc. has completed a second closing under its previously announced financing plan, issuing on March 25, 2026 a US$1.5 million senior convertible promissory note to an institutional investor as part of an up to US$30 million note program first agreed in December 2025. The notes, which bear 10% annual interest and mature one year from issuance, are convertible into ADSs at the lower of a fixed US$0.3299 price or market price, subject to ownership caps and customary anti-dilution and adjustment provisions.

The company’s March 2, 2026 Form F-1 registration statement to register the resale of ADSs underlying the notes became effective on March 5, 2026, paving the way for further closings of up to US$25.13 million in additional notes if conditions are met. The debt carries covenants limiting senior indebtedness, dividends, asset transfers, and affiliate transactions, requires a minimum US$500,000 cash balance, and features a default interest rate of 19%, underscoring both the cost and the structured nature of this funding for existing shareholders and creditors.

More about Yimutian Inc. Unsponsored ADR

Yimutian Inc. is a China-based company whose American depositary shares trade in the U.S. market, giving foreign investors exposure to its Class A ordinary shares. The company accesses U.S. capital markets through ADSs and convertible instruments, indicating a financing strategy focused on institutional investors and cross-border equity-linked funding.

Average Trading Volume: 1,711,607

Technical Sentiment Signal: Strong Sell

Current Market Cap: $25.4M

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