Zhibao Sells $1M Convertible Note, Removes Floor Price on Existing Notes
ZBAO sits 28% above its 52-week low of $0.084 on elevated volume (4.4× avg).
Summary
Zhibao Technology issued a $1 million senior secured convertible note to 3i, LP for $900,000, and amended existing notes to remove the floor price and cash true-up provisions. The new note has a $0.87 conversion price and a 35.9 million share cap.
Key Events · Financing and Capital Events · ZBAO
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Third Convertible Note Issued
Company sold a $1,000,000 senior secured convertible note to 3i, LP for $900,000 (10% original issue discount) on September 17, 2026.
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Floor Price Removed
Amendment deletes the floor price and cash true-up provisions from the First Note, Second Note, and future Notes, removing a cash-settlement obligation but also removing downside protection for the company.
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Conversion Terms
Third Note has a $0.87 conversion price (vs. current share price of $0.1073), a Share Cap of 35,941,170 Class A ordinary shares, and a 125% payoff obligation if the Share Cap is reached.
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Installment Payments Required
Company must make 12 equal monthly installment payments under the Third Note, with the first installment due 30 days after issuance.
Analysis · ZBAO · Finance
Zhibao Technology closed a third tranche of its senior secured convertible notes, raising $900,000 in cash from 3i, LP. More importantly, the company and the note holder agreed to remove the floor price and cash true-up provisions from the existing notes — a change that removes a cash-settlement obligation but also removes a downside protection for the company, potentially increasing dilution if the stock price falls. The new Third Note carries a conversion price of $0.87, far above the current share price of $0.1073, and a Share Cap of 35.9 million shares. Given the company's Nasdaq deficiency notice, the pending 1-for-50 reverse split vote on September 29, and the massive 810 million share overhang from the PIPE financing, this additional convertible debt adds another layer of potential dilution and financial pressure.
How filings like this one have moved
In the 30 days to Sep 30, 2026, 34.9% of the 1020 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.54%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, ZBAO was trading at $0.11 on NASDAQ in the Finance sector, with a market capitalization of approximately $5.5M. The 52-week trading range was $0.08 to $1.34. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.