Zhibao Technology Inc. Announces Signing a Non-Binding Term Sheet for Approximately 3,500 Bitcoins as Consideration for PIPE Financing
Rhea-AI Summary
Zhibao Technology (NASDAQ: ZBAO) signed a non-binding term sheet with JOYERTECH AND INFORMATION OPC for a proposed PIPE financing in which the buyer, or its designee, intends to subscribe for Zhibao securities using consideration expected to include approximately 3,500 Bitcoin (BTC), subject to final valuation and multiple reviews.
The Transaction is contingent on due diligence, definitive agreements, corporate and regulatory approvals, and Nasdaq listing compliance, with no assurance of completion. The buyer is expected to designate a majority of Zhibao’s board at closing, while the current management team is expected to continue operating the legacy business until any restructuring.
Positive
- Non-binding PIPE term sheet with consideration expected to include ~3,500 BTC
- Buyer expected to designate majority of board at PIPE closing
- Current management team expected to continue overseeing legacy operations during any transition
Negative
- Term sheet is non-binding with no assurance the Transaction will close
- Closing subject to extensive due diligence, approvals, and Nasdaq compliance
- Bitcoin consideration subject to valuation, custody, audit, and regulatory review
- Proposed control transition gives Buyer board majority, creating governance uncertainty for existing shareholders
Market reaction after PIPE financing term sheet: ZBAO +44.75% in the Jul 22 session
In the Jul 22 session, ZBAO gained 44.75%, reflecting a significant positive market reaction. Argus tracked a peak move of +138.4% during that session. Argus tracked a trough of -20.6% from its starting point during tracking. Our momentum scanner triggered 210 alerts that day, indicating exceptionally high trading interest and price volatility. Trading volume was exceptionally heavy at 23.5x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 15 | Nasdaq deficiency | Negative | -11.6% | Deficiency letter cited minimum bid below $1.00 from May 27 through July 9 |
| Jul 08 | Insurance cooperation | Positive | -33.0% | Three-year embedded insurance agreement expanded potential access to nearly 20 million registered users |
| May 15 | Director appointment | Positive | +9.3% | Subsidiary appointed Jun Xu as independent director following reinsurance rating disclosures |
| Apr 07 | Investor events | Neutral | -2.4% | Company announced earnings call and investor webinar participation scheduled for April 17 |
| Mar 31 | Earnings results | Positive | -0.8% | Six-month results showed revenue growth, gross profit, and a net income turnaround |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Responses were mixed: two positive announcements were followed by declines, while one positive announcement was followed by a gain.
Key Terms
non-binding term sheet financial
private investment in public equity financial
pipe financing financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Shanghai, China--(Newsfile Corp. - July 22, 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 that it has entered into a non-binding term sheet (the "Term Sheet") with JOYERTECH AND INFORMATION OPC (the "Buyer") outlining the principal terms of a proposed private investment in public equity ("PIPE") financing (the "Transaction").
The signed term sheet is non-binding and the proposed Transaction remains subject to, among other things, the completion of satisfactory legal, financial, and operational due diligence, the negotiation and execution of definitive agreements, applicable corporate and regulatory approvals, compliance with Nasdaq listing requirements, and the satisfaction of other customary closing conditions. No assurance can be given that definitive agreements will be executed or that the proposed Transaction will be consummated on the terms described herein, or at all.
Key Transaction Structure & Strategic Highlights
- PIPE Issuance & Bitcoin Consideration: 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 ("BTC"), subject to final valuation, custodial arrangements, audit verification, regulatory review, Nasdaq compliance, and the execution of definitive agreements.
- Proposed Control Transition: Subject to the terms and conditions of definitive agreements, 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.
- Management of existing business: Until the separation, disposition, or other restructuring of the Company's existing business, the current management team is expected to continue overseeing the day-to-day operations of the legacy business.
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, 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/306083