Zhibao Tech Signs $154.7M PIPE Deal with 2,380 BTC Payment and Board Control

ChainCatcher report, according to CryptoSlate, Nasdaq-listed Zhibao Technology (a Chinese insurtech company) signed a $154.7 million PIPE (Private Investment in Public Equity) agreement on July 31, with investors paying in 2,380 bitcoins (at a fixed price of $65,000 per bitcoin). Each of the 10 investor entities listed in the agreement received 44.2 million units, totaling $15.47 million, paid in 238 bitcoins. Investors purchased 442 million units at $0.35 per unit, with each unit comprising one Class A common share and a two-year warrant to purchase one additional share at an exercise price of $0.35, resulting in a potential total issuance of 884 million shares. Upon completion of the transaction, investors will designate four of the five board members and select the new CEO and CFO. The existing four directors, along with the current CEO and CFO, will resign. This issuance will significantly dilute the ownership percentage prior to the PIPE transaction. The 49,001,662 shares will represent approximately 9.98% of the post-transaction share base, while Class B shareholders will lose their 20-to-1 voting advantage. If all new warrants are subsequently exercised, the share base will increase to at least 933,001,662 shares, reducing the pre-PIPE ownership percentage to approximately 5.25%. The agreement is scheduled to close within 12 business days following July 31, or on another date mutually agreed upon in writing by both parties; however, required capital increases and regulatory approvals remain unresolved.