zSpace Eliminates Over $12 Million in Debt Through Conversion to Equity
zSpace (OTC:ZSPC) converted over $12 million of debt into equity through agreements with two lenders, eliminating the related obligations and reducing total debt to about $5 million.
Rhea-AI Summary
zSpace (OTC:ZSPC) converted over $12 million of debt into equity through agreements with two lenders, eliminating the related obligations and reducing total debt to about $5 million.
Fiza Investments converted roughly $10 million and 3i, LP about $2 million, both at 150% of the pre-closing market price, with 3i accepting a nine-month no-conversion period on its remaining note.
Positive
- Over $12 million of outstanding debt converted into equity, reducing leverage
- Fiza Investments retires approximately $10 million of debt, including $7.2 million principal
- 3i converts about $2 million of debt into equity at 150% of market price
- All Fiza debt obligations fully retired, simplifying zSpace’s capital structure
- Remaining debt reduced to approximately $5 million on zSpace’s balance sheet
- Nine-month block on 3i converting remaining note, limiting near-term share issuance
Negative
- Debt-for-equity conversions increase share count, implying potential dilution for existing shareholders
- Issuance of preferred stock to Fiza may add seniority over common shareholders
- Approximately $5 million of debt still outstanding after the refinancing actions
Details
News Market Reaction – ZSPC
In the Jun 1 session, ZSPC gained 25.28%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
- Debt converted
- over $12 million
- Total outstanding debt converted to equity across both lenders
- Fiza debt converted
- approximately $10 million
- Total debt (principal plus interest) converted by Fiza Investments Limited
- Fiza principal
- approximately $7.2 million
- Principal portion of Fiza’s debt converted to equity
- Fiza accrued interest
- $2.8 million
- Accrued interest converted alongside Fiza’s principal
- 3i debt converted
- approximately $2 million
- Outstanding debt converted by 3i, LP into common stock
- Conversion price premium
- 150% of market price
- Equity issued to both lenders at 150% of pre-closing market price
- Conversion lockup
- nine-month period
- 3i restricted from converting remaining note into common stock
- Remaining debt
- approximately $5 million
- Total debt left on zSpace’s balance sheet after conversions
Historical Context
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80 AR/VR laptops deployed for healthcare training across Kentucky schools.
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NASA-style mission simulations via AR/VR laptops for 52,000 students.
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Q1 2026 revenue decline, widened net loss, ongoing strategic review.
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Innovative K–12 curriculum leadership tied to zSpace AR/VR adoption.
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New 3D STEM lab in Poland using 10 zSpace Inspire 2 laptops.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
common stock financial
preferred stock financial
senior secured convertible note financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Agreements with Two Lenders Strengthen Balance Sheet and Support Long-Term Growth
SAN JOSE, Calif., June 01, 2026 (GLOBE NEWSWIRE) -- zSpace, Inc. (OTC: ZSPC) (“zSpace” or the “Company”), a leading provider of immersive augmented and virtual reality learning technology, today announced that it has entered into agreements with two of its lenders to convert more than
Under one agreement, Fiza Investments Limited converted approximately
Under the other agreement, 3i, LP converted approximately
“These agreements reflect meaningful progress in strengthening zSpace’s financial foundation,” said Paul Kellenberger, Chief Executive Officer of zSpace. “By converting a substantial portion of our debt into equity, we are reducing financial obligations and positioning the Company to focus on what matters most — delivering innovative learning experiences and driving long-term value for our customers, partners, and shareholders.”
About zSpace
zSpace, Inc. is a leader in immersive learning technology, providing augmented and virtual reality solutions to K-12 schools, higher education institutions, and workforce training programs. zSpace’s award-winning platform combines hardware, software, and curriculum to bring STEM and career and technical education to life. For more information, visit www.zspace.com.
Forward-Looking Statements
Certain statements contained 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. These statements include, but are not limited to, statements relating to the stabilization of the education market, the long-term potential of our business, and ability to execute with discipline. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “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. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions and other factors discussed in the “Risk Factors” section of the Company’s filings with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Any forward-looking statements contained in this press release speak only as of the date hereof, and zSpace, Inc. specifically 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.
Investor / Media Contact:
zSpace, Inc.
ir@zspace.com
www.zspace.com
