iuzi Holdings Raises Funds through Convertible Notes

Jiuzi Holdings (NASDAQ: JZXN) has raised funds through the issuance of convertible notes. The company’s board of directors approved this move to finance a strategic initiative: acquiring Bitcoin.

Here are the key details from the announcement:

Purpose of the Funds: The capital raised will be used exclusively for purchasing Bitcoin to build a strategic reserve.

“Thousand Coins Plan”: This fundraising is the first step in Jiuzi Holdings’ previously announced “Thousand Coins Plan,” which aims to acquire 1,000 bitcoins. The initial purchase with these funds will be 23.5 bitcoins.

Rationale: The company believes that diversifying its assets into digital currencies like Bitcoin will enhance its risk resilience and profitability. The CEO, Li Tao, cited a long-term confidence in the potential of blockchain technology.

Convertible Notes Explained: A convertible note is a type of debt instrument that can be converted into equity (shares of common stock) in the issuing company at a later date. It is a popular way for companies to raise capital, as it provides investors with the potential for equity-like returns while offering the limited protection of being a debt holder. The terms of these notes often include a conversion price, maturity date, and sometimes a discount rate or a valuation cap to protect early investors. By issuing convertible notes, Jiuzi Holdings can raise funds without immediately diluting the ownership of existing shareholders

Jiuzi Holdings (NASDAQ: JZXN) has raised funds through the issuance of convertible notes. The company’s board of directors approved this move to finance a strategic initiative: acquiring Bitcoin.

Here are the key details from the announcement:

Purpose of the Funds: The capital raised will be used exclusively for purchasing Bitcoin to build a strategic reserve.

“Thousand Coins Plan”: This fundraising is the first step in Jiuzi Holdings’ previously announced “Thousand Coins Plan,” which aims to acquire 1,000 bitcoins. The initial purchase with these funds will be 23.5 bitcoins.

Rationale: The company believes that diversifying its assets into digital currencies like Bitcoin will enhance its risk resilience and profitability. The CEO, Li Tao, cited a long-term confidence in the potential of blockchain technology.

Convertible Notes Explained: A convertible note is a type of debt instrument that can be converted into equity (shares of common stock) in the issuing company at a later date. It is a popular way for companies to raise capital, as it provides investors with the potential for equity-like returns while offering the limited protection of being a debt holder. The terms of these notes often include a conversion price, maturity date, and sometimes a discount rate or a valuation cap to protect early investors. By issuing convertible notes, Jiuzi Holdings can raise funds without immediately diluting the ownership of existing shareholders