Zhibao Technology Inc. Announces Closing of $154.7 Million PIPE Financing
Rhea-AI Summary
Zhibao Technology (NASDAQ: ZBAO) has closed a previously announced private investment in public equity (PIPE), issuing an aggregate 442,000,000 PIPE Units at $0.35 per Unit for total gross proceeds of $154,700,000.
According to Zhibao, each Unit includes one Class A Ordinary Share and a two-year Warrant to purchase one Class A Ordinary Share at an exercise price of $0.35. Investors fully paid the purchase price by contributing 2,380 Bitcoins to the company’s designated wallet, based on a reference price of $65,000 per Bitcoin as of July 30, 2026. Zhibao delivered 395,678,152 Units at closing, with 46,321,848 additional Units to be issued after shareholder approval with no further consideration. The company plans to use commercially reasonable efforts to file a Form F-1 registration statement within 45 days of July 31, 2026 to cover resale of the PIPE and certain management shares.
Positive
- $154.7 million PIPE proceeds fully funded via 2,380 Bitcoins
- Issuance of 442,000,000 PIPE Units strengthens capital base
- Two-year warrants at $0.35 could provide additional capital upon exercise
- Investors paid in Bitcoin at a reference price of $65,000 per BTC
- Planned Form F-1 filing within 45 days may facilitate resale liquidity
Negative
- Up to 442,000,000 new shares plus warrant shares imply substantial potential dilution
- Remaining 46,321,848 Units depend on future shareholder approval
Market reaction after PIPE financing closing: ZBAO -5.79%
Following this news, ZBAO has declined 5.79%, reflecting a notable negative market reaction. Argus tracked a peak move of +5.3% during the session. Our momentum scanner has triggered 20 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $0.21. Trading volume is very high at 3.9x the average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 12 | AI joint venture | Positive | +3.3% | Joint venture targeted AI-native embedded long-term insurance services |
| Jul 31 | PIPE financing agreement | Positive | +16.0% | Signed financing agreement involving units, warrants, and Bitcoin consideration |
| Jul 22 | Bitcoin financing term sheet | Positive | +44.8% | Proposed PIPE financing contemplated approximately 3,500 Bitcoin as consideration |
| Jul 15 | Nasdaq deficiency notice | Negative | -11.6% | Nasdaq cited noncompliance with the minimum bid price requirement |
| Jul 08 | Embedded insurance cooperation | Positive | -33.0% | Three-year agreement expanded embedded insurance access through a civic platform |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Positive announcements aligned with gains in 4 of 5 recent events, while one cooperation announcement diverged with a decline.
Key Terms
private investment in public equity financial
regulation s regulatory
warrant financial
form f-1 regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
KEY HIGHLIGHTS
$154.7 Million PIPE Financing Closed: Zhibao Technology Inc. (NASDAQ: ZBAO) ("Zhibao," "we," or the "Company") has closed its previously announced private investment in public equity ("PIPE") financing for an aggregate purchase price of$154,700,000 .- Streamlined Unit Structure: The transaction comprises 442,000,000 PIPE Units at
$0.35 per Unit (each consisting of one Class A Ordinary Share and one two-year Warrant exercisable at$0.35 per share), with 395,678,152 Units delivered at closing and the remaining 46,321,848 Units to be delivered following shareholder approval.
Shanghai, China--(Newsfile Corp. - August 17, 2026) - Zhibao Technology Inc. (NASDAQ: ZBAO) ("Zhibao," "we," or the "Company"), a leading high-growth InsurTech company and pioneer of the 2B2C digital embedded insurance model in China, today announced the successful closing of its private placement financing pursuant to the Securities Purchase Agreement dated July 31, 2026, as amended on August 17, 2026 (the "Amended Securities Purchase Agreement"), with a syndicate of non-U.S. investors (the "Investors") in reliance upon Regulation S under the Securities Act of 1933, as amended.
Pursuant to the Amended Securities Purchase Agreement, the Company has completed the PIPE financing for an aggregate of 442,000,000 PIPE Units at a purchase price of
Each PIPE Unit consists of one Class A Ordinary Share, par value
Management Commentary
"The successful closing of this
Mr. Ma continued: "I am very hopeful for the future as this investment solidifies our foundations and ensures we are even better positioned to deepen our scenario integrations, expand our AI-driven capabilities, and provide top-notch service to our existing and future clients. Our investors bring with them deep understanding and technical ability of cryptocurrency markets and Web3 infrastructure. I am confident that our combined might will unlock new and innovative synergies and scenarios that will extend our lead in the Insurtech space and unlock sustainable, long-term value for our shareholders, partners, and clients worldwide."
Registration Rights
Under the terms of the transaction agreements, the Company will use commercially reasonable efforts to file a registration statement on Form F-1 with the U.S. Securities and Exchange Commission (SEC) within forty-five (45) calendar days following the July 31, 2026 effective date, covering the resale of the Class A Ordinary Shares, Warrant Shares, and certain management shares.
About Zhibao Technology Inc.
Zhibao Technology Inc. is a leading and high-growth InsurTech company primarily engaging in providing digital insurance brokerage services through its operating entities ("Zhibao China Group") in China. 2B2C ("to-business-to-customer") digital embedded insurance is the Company's innovative business model, which Zhibao China Group pioneered in China. Zhibao China Group launched the first digital insurance brokerage platform in China in 2020, which is powered by their proprietary PaaS ("Platform as a Service").
Zhibao has developed over 40 proprietary and innovative digital insurance solutions addressing different scenarios in a wide range of industries, including but not limited to travel, sports, logistics, utilities, and e-commerce. Zhibao acquires and analyzes customer data, utilizes big data and AI technology to continually iterate and enhance its digital insurance solutions. This iterative process, in addition to continually improving its digital insurance solutions, will keep it abreast of the new trends and customer preferences in the market. For more information, please visit: ir.zhibao-tech.com.
Forward-Looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "is/are likely to," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, the receipt of shareholder approval, the satisfaction of post-closing covenants, and other factors discussed in the "Risk Factors" section of our annual reports on Form 20-F (as amended) and registration statements on Form F-1 (as amended) that have been filed or will be filed from time to time with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statements and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.
Investor Relations Contact
Zhibao Technology Inc.
Investor Relations
Office Email: ir@zhibao-tech.com
Skyline Corporate Communications Group, LLC
Scott Powell, President
Avenues Tower
1177 Avenue of the Americas, 5th floor
New York, NY 10036
Office: (646) 893-5835
Email: info@skylineccg.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/309888