zSpace Announces Strategic Investment of $3 Million from Planet One Education, a Global Technology Leader Delivering High-Impact Education Solutions

zSpace (NASDAQ: ZSPC) announced a $3.0 million strategic investment from Planet One Education, closed Jan 27, 2026, via the purchase of 1.5 million convertible preferred shares at $2.00 and 1 million warrants at $3.00 exercise price.

Rhea-AI Summary

zSpace (NASDAQ: ZSPC) announced a $3.0 million strategic investment from Planet One Education, closed Jan 27, 2026, via the purchase of 1.5 million convertible preferred shares at $2.00 and 1 million warrants at $3.00 exercise price.

Proceeds will strengthen the balance sheet, support working capital, and accelerate international expansion while the companies explore a strategic collaboration to scale STEM and vocational training globally.

Positive

• Raised $3.0 million in strategic funding closed Jan 27, 2026
• Planet One brings a global education footprint supporting international expansion
• Funding designated to strengthen balance sheet and support working capital

Negative

• Issuance of 1.5M convertible preferred shares may dilute common shareholders on conversion
• Grant of 1M warrants at $3.00 introduces additional potential future dilution

Argus Jan 30 session

-11.65% close to close Open Argus

Details

News Market Reaction – ZSPC

On Jan 30, the first trading day after this news, ZSPC closed 11.65% below the previous close.

Data tracked by StockTitan Argus for the Jan 30 session.

Market Context

On Jan 30, the first trading day after this news, the stock closed 11.7% below the previous close. A...

Analysis

On Jan 30, the first trading day after this news, the stock closed 11.7% below the previous close. A negative reaction despite new capital would fit a pattern where investors focus on dilution and prior balance-sheet stress. The $3 million investment involves convertible preferred shares and warrants priced well above the current $0.497 stock level, against a backdrop of going-concern language, senior secured convertible debt amendments, and Nasdaq minimum bid price noncompliance. Recent insider sales to cover taxes may further color sentiment, so past sensitivity to financing structures remains a key consideration when interpreting weakness.

Key Figures

Strategic investment: $3 million Convertible preferred shares: 1.5 million shares Preferred share price: $2.00 per share +5 more

Strategic investment

$3 million

Investment from Planet One Education via preferred stock and warrants

Convertible preferred shares

1.5 million shares

Preferred stock purchased by Planet One

Preferred share price

$2.00 per share

Purchase price for convertible preferred stock

Warrants issued

1 million warrants

Warrants granted to Planet One Education

Warrant exercise price

$3.00 per share

Exercise price on Planet One warrants

Current share price

$0.497

Pre-news price vs warrant and preferred pricing

Price vs 52-week high

-98.14%

Distance from 52-week high of $26.79

Price change 24h

-5.33%

Move into the announcement date

Historical Context

5 past events · Latest: Jan 12

5 events

1. Jan 12

   AR/VR case study

   24h Move

   -6.0%

   Showcase of immersive AR/VR learning impact for neurodivergent students at FETC.

2. Dec 18

   Product launch

   24h Move

   +2.8%

   Launch of Heavy Vehicle Fundamentals AR application with Labtech for CTE programs.

3. Dec 11

   Restructuring plan

   24h Move

   +20.9%

   Strategic restructuring targeting over 30% run-rate operating expense reductions.

4. Dec 09

   CTE content expansion

   24h Move

   +1.9%

   Major expansion of CTE AR/VR applications and new zStylus One hardware at ACTE event.

5. Dec 02

   Customer deployment

   24h Move

   -0.9%

   Greater Altoona CTC adoption of zSpace Inspire 2 for dental assistant training.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

convertible preferred stock, warrants, ar/vr

3 terms

convertible preferred stock financial

"The Planet One investment of $3 million through the purchase of convertible preferred stock and warrants..."

Convertible preferred stock is a special class of company shares that pays priority, usually fixed, payments to holders and can be exchanged later for a set number of common shares. It matters to investors because it combines steady income and added protection with the chance to share in a company’s upside; think of it as a hybrid between a bond that pays regularly and an option to convert into growth-oriented stock, where the conversion rules influence both potential gains and how much common shareholders’ ownership may be reduced.

warrants financial

"The Planet One investment of $3 million through the purchase of convertible preferred stock and warrants..."

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

View in glossary

ar/vr technical

"zSpace, Inc. (NASDAQ: ZSPC), a leading provider of augmented and virtual reality (AR/VR) solutions for education..."

Augmented reality (AR) and virtual reality (VR) are technologies that add digital content to your view of the real world (AR) or place you inside a fully computer-created environment (VR), like wearing smart glasses or stepping into a simulated room. They matter to investors because they create new ways to sell hardware, software, services, and advertising, and can change how people shop, learn, and work—driving potential revenue growth but also requiring heavy investment and adoption to pay off.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SAN JOSE, Calif., Jan. 29, 2026 (GLOBE NEWSWIRE) -- zSpace, Inc. (NASDAQ: ZSPC), a leading provider of augmented and virtual reality (AR/VR) solutions for education, today announced it has received a strategic investment from Planet One Education (Planet One), a global education company delivering solutions across K12, TVET and higher education spaces.

The Planet One investment of $3 million through the purchase of convertible preferred stock and warrants closed on January 27, 2026. This represents 1.5 million convertible preferred shares ($2.00 per share). Planet One also receives 1 million warrants with an exercise price of $3.00 per share. zSpace intends to use the proceeds to strengthen its balance sheet, support working capital needs, and accelerate its international expansion.

In addition to the investment, zSpace and Planet One are exploring a strategic collaboration to expand STEM and vocational training initiatives outside the United States. By combining zSpace’s patented AR/VR ecosystem with Planet One’s extensive footprint and track record of executing government-scale education projects, the companies intend to evaluate future joint business opportunities to address the significant demand for digital education.

"This investment and Planet One relationship opens the door to the most important growth markets in education today outside the United States," said Paul Kellenberger, CEO of zSpace. "zSpace’s AR/VR ecosystem combined with Planet One’s existing partnerships would position zSpace to support large-scale adoption while creating long-term value."

By securing this funding, zSpace is better positioned to capitalize on the rapid digital transformation of global education sectors. The capital will support the delivery of zSpace’s headset-free AR/VR technology to meet the urgent need for cost-effective, scalable vocational and STEM training solutions around the world.

"Our mission is to bridge the digital divide by bringing the world’s best learning tools to developing economies," said Sanjeev Mansotra, Chairman of Planet One. "We believe in the zSpace platform and its ability to transform student outcomes. This investment reflects our confidence in zSpace’s technology, and we look forward to exploring a deeper partnership to equip millions of students with modern global skills."

About zSpace

zSpace, Inc. (NASDAQ: ZSPC) delivers innovative augmented and virtual reality (AR/VR) experiences that drive achievement in STEM, CTE, and career readiness programs. Trusted by over 3,500 school districts, technical centers, community colleges, and universities, zSpace enables hands-on "learning by doing" experiences proven to improve engagement and student outcomes. Headquartered in San Jose, California, zSpace holds more than 80 patents, with research published in the Journal of Computer Assisted Learning (2021) validating the impact of 3D virtual reality technologies on student knowledge gains.

About Planet One

Planet One Group is a diversified global group focused on education, agriculture, mining and oil & gas sectors. Planet One Education is a leading education solutions provider delivering large-scale education technology and infrastructure solutions to Governments world-wide. With a focus on sustainable development, Planet One partners with global technology leaders to deliver high-impact educational solutions across the African continent and other emerging markets.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "intends," "plans," "believes," "seeks," "should," "may," "will" and variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the initial nature of these investments; the expected uses of the proceeds; the potential for future business opportunities or collaborations internationally or with Planet One; the positioning of zSpace for large scale adoption, large scale deployments and long-term value; the projected demand for STEM education; and the ability for the zSpace platform to transform student outcomes. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause such differences include, but are not limited to: the risk that further strategic collaboration with Planet One may not be reached on favorable terms or at all; political, economic, and regulatory risks associated with international operations; general economic risks and other factors discussed in the Risk Factors section of the Company’s filings with the SEC. zSpace, Inc. disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Press Contact:

Amanda Austin Senior Marketing Director, zSpace, Inc. press@zspace.com

Investor Relations Contact:

Gateway Group Cody Slach, Greg Robles 949.574.3860 | ZSPC@gateway-grp.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What exactly did Planet One invest in zSpace (ZSPC) on January 27, 2026?

Planet One invested $3.0 million via 1.5M convertible preferred shares at $2.00 and received 1M warrants at $3.00. According to zSpace, the transaction closed on January 27, 2026 and is structured to support growth and collaboration.

How will zSpace (ZSPC) use the $3 million investment from Planet One?

zSpace will use the proceeds to strengthen the balance sheet, support working capital, and accelerate international expansion. According to zSpace, funds target delivery of headset-free AR/VR for scalable STEM and vocational training outside the U.S.

What are the dilution risks to zSpace (ZSPC) shareholders from this Planet One deal?

Dilution risk comes from 1.5M convertible preferred shares and 1M warrants at $3.00 that may convert or be exercised. According to zSpace, these securities could increase share count if converted or exercised, affecting existing holders.

Does the Planet One investment create a strategic partnership for zSpace (ZSPC)?

Yes. zSpace and Planet One are exploring a strategic collaboration to expand STEM and vocational training internationally. According to zSpace, they plan to evaluate joint business opportunities leveraging Planet One's government-scale education experience.

Will the Planet One investment immediately change zSpace's product deployment plans?

The investment is intended to accelerate international deployment of zSpace's headset-free AR/VR technology. According to zSpace, proceeds support scaling vocational and STEM training solutions to meet global demand, though specific deployment timelines were not provided.