In brief – Zhibao Technology signed a non-binding term sheet with Joyertech and Information OPC for a PIPE financing deal involving roughly 3,500 Bitcoin, worth approximately $220 million at current prices. – The buyer would designate a majority of Zhibao’s board of directors at…
osing, effectively taking control of the company while current management continues running day-to-day operations. – Zhibao received a Nasdaq deficiency letter on July 15 for trading below $1 per share, and its stock briefly doubled after the Bitcoin treasury announcement. Zhibao Technology Inc., a Nasdaq-listed Shanghai-based company that sells digital insurance products in China, announced Wednesday that it has signed a non-binding term sheet to receive roughly 3,500 Bitcoin as payment in a proposed stock sale
The deal would be worth approximately $220 million at current BTC prices. According to the company’s press release, “the Buyer (or its designated entity) intends to subscribe for securities in a proposed PIPE financing of the Company, with consideration expected to include approximately 3,500 Bitcoin, subject to final valuation, custodial arrangements, audit verification, regulatory review, Nasdaq compliance, and the execution of definitive agreements.” A PIPE, or private investment in public equity, means a private buyer purchases shares directly from a publicly listed company rather than on the open market. In this case, the buyer, a firm called Joyertech and Information OPC, would pay for those shares not in cash but in Bitcoin.
Who’s actually in charge here? The deal comes with a catch that goes well beyond a simple Bitcoin buy. Per the term sheet, “the Company intends to maintain its existing operations while the Buyer is expected to designate a majority of the members of the board of directors at the closing of the PIPE financing.” That means Joyertech would effectively take control of the company.