Zeta Network Group Raises $5.4 Million in First Tranche of $10 Million Convertible Notes Offering

The latest announcement is out from Zeta Network ( (ZNB) ).

On March 10, 2026, Zeta Network Group signed a securities purchase agreement with institutional investors for a registered direct offering of up to $10 million in senior original-issue-discount convertible notes and accompanying warrants, structured in two tranches. The first tranche, which closed on March 12, 2026, delivered $5.4 million in gross proceeds through $6 million in face-value senior secured notes, warrants for 270,271 Class A ordinary shares, and 185,344 pre-delivery shares that are restricted from voting or transfer until conversion or exercise.

The zero-coupon First Tranche Notes convert into ordinary shares at the lower of $18.51 or a formula tied to 90% of the lowest 10-day VWAP, subject to a floor price of $1.742 with anti-dilution protections, and rank senior to all other company debt and liabilities. The associated five-year warrants carry an initial $18.51 exercise price with adjustment features, while Maxim Group earns a 6% placement fee and investors have been granted rights to a second $4 million tranche of similar notes and warrants following the effectiveness of a 1-for-100 reverse share split, providing Zeta Network with flexible but potentially dilutive financing for general corporate and working capital needs.

More about Zeta Network

Zeta Network Group is a Cayman Islands–incorporated company with its principal executive office in New York, listed on Nasdaq and reporting as a foreign private issuer in the U.S. capital markets. The group issues Class A ordinary shares with a par value of $0.25, and uses shelf registrations and structured securities to access institutional investors for funding its operations and growth.

Average Trading Volume: 23,197

Technical Sentiment Signal: Strong Sell

Current Market Cap: $12.75M

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