zSpace, Inc. Announces Additional $4.3 Million Senior Secured Convertible Note Issuance
zSpace, Inc. Announces Additional $4.3 Million Senior Secured Convertible Note Issuance
zSpace (NASDAQ: ZSPC) issued an additional $4,301,075 senior secured convertible note on March 16, 2026, under its existing financing arrangement first entered on April 10, 2025.
zSpace (NASDAQ: ZSPC) issued an additional $4,301,075 senior secured convertible note on March 16, 2026, under its existing financing arrangement first entered on April 10, 2025. The note is convertible into common stock.
The company said it will use net proceeds to repay outstanding debt, strengthen working capital and support general corporate purposes to maintain financial flexibility for its AR/VR education platform.
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Positive
Additional financing of $4.3M raised
Proceeds earmarked to repay outstanding debt
Working capital boost for operations and flexibility
Negative
Conversion risk could dilute existing shareholders if converted
On Mar 17, the day this news came out, ZSPC closed 0.26% above the previous close.
Data tracked by StockTitan Argus for the Mar 17 session.
Market Context
This announcement expands zSpace’s senior secured convertible note financing by $4,301,075, intended...
Analysis
This announcement expands zSpace’s senior secured convertible note financing by $4,301,075, intended partly to repay about $2,000,000 of existing debt and bolster working capital. It builds on a prior $13,978,495 note and recent preferred stock and warrant funding, indicating continued reliance on structured capital. Investors may track how conversion pricing, the reverse stock split authorization, and future use of equity-linked facilities interact with the company’s AR/VR growth initiatives and loss profile.
Key Figures
New convertible note:$4,301,075Original note size:$13,978,495Debt repayment:$2,000,000+5 more
New convertible note
$4,301,075
Additional senior secured convertible note issued March 16, 2026
Original note size
$13,978,495
Senior secured convertible note closed April 11, 2025
Debt repayment
$2,000,000
Portion of existing debt to be repaid with new note proceeds
Conversion price
$0.28 per share
Initial conversion price of additional senior secured convertible note
Conversion floor
$0.05 per share
Conversion floor price on additional senior secured convertible note
Note maturity
March 15, 2028
Maturity date of additional senior secured convertible note
Strategic investment
$3,000,000
Series P preferred stock and warrants investment closed Jan 27, 2026
SPA maximum
$10,000,000
Maximum purchases under Series P Securities Purchase Agreement
Showcased AR/VR learning benefits for neurodivergent students at FETC 2026.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
senior secured convertible note, securities purchase agreement, working capital, reverse stock split, +4 more
8 terms
senior secured convertible notefinancial
"announced that it has issued an additional $4,301,075 senior secured convertible note"
A senior secured convertible note is a loan a company takes that is backed by specific assets and has first claim on repayment ahead of other creditors, but can also be exchanged for company shares under agreed conditions. For investors it signals higher priority if the company struggles (like a mortgage holder vs a general creditor) while also creating potential stock dilution if the loan is converted into equity, affecting value and recovery prospects.
securities purchase agreementfinancial
"to an institutional investor pursuant to the terms of its previously announced securities purchase agreement"
A securities purchase agreement is a written contract between a buyer and a seller outlining the terms for buying or selling financial assets such as stocks or bonds. It specifies details like the price, quantity, and conditions of the transaction, similar to a shopping list with agreed-upon terms. For investors, it provides clarity and legal protection when transferring ownership of these financial instruments.
working capitalfinancial
"use the net proceeds from the additional note to repay outstanding debt, enhance the company’s working capital position"
Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.
"approved, by written consent, an authorization for the board to implement a reverse stock split of its common stock"
A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.
prospectusregulatory
"zSpace, Inc. Prospectus Filed Pursuant to Rule 424(b)(4)"
A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.
equity linefinancial
"may raise up to an additional $24.4 million from future sales of equity line shares to Tumim"
An equity line is a financing arrangement that lets a company raise cash over time by issuing new shares up to an agreed limit to an investor or through a placement program. It acts like a tapable credit line paid with stock rather than cash, giving the company flexible funding for operations or growth while reducing each existing share's ownership proportion; investors watch these deals because they affect share supply and shareholder value.
going concernfinancial
"faces going‑concern uncertainty, relies heavily on government‑funded school budgets"
Going concern is the accounting assumption that a company will keep operating and meeting its obligations for the foreseeable future. The phrase matters most when a company or its auditors disclose substantial doubt about it, a formal warning that the business may not have enough resources to continue without raising money, restructuring, or selling assets. That language in a filing or press release signals elevated financial risk.
controlled companyregulatory
"making zSpace a “controlled company” under Nasdaq rules"
A controlled company is a publicly traded firm where one shareholder or a small group holds enough voting power to determine board members and major strategic choices. For investors this matters because control can speed decision-making and protect long-term plans, but it also raises the risk that majority owners will favor their own interests over minority shareholders, reducing outside oversight—like a family-owned restaurant that sold shares but the family still calls the shots.
Company to use proceeds to repay a portion of existing debt and support working capital
SAN JOSE, Calif., March 17, 2026 (GLOBE NEWSWIRE) -- zSpace, Inc. (NASDAQ: ZSPC), a leading provider of augmented and virtual reality (AR/VR) solutions for education, today announced that it has issued an additional $4,301,075 senior secured convertible note to an institutional investor pursuant to the terms of its previously announced securities purchase agreement.
The additional note was issued on March 16, 2026 under the company’s previously announced senior secured convertible note financing, originally entered into on April 10, 2025. Under that agreement, the company initially issued a senior secured convertible note in the original principal amount of $13,978,495, which closed on April 11, 2025.
The newly issued note is convertible into shares of the company’s common stock.
zSpace intends to use the net proceeds from the additional note to repay outstanding debt, enhance the company’s working capital position and support general corporate purposes.
This financing is part of the company’s ongoing efforts to strengthen its capital structure and maintain financial flexibility while continuing to invest in its immersive learning platform.
About zSpace, Inc.
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.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the intended use of proceeds from the issuance of the additional note and the company’s financial and operational plans. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, among others, market conditions, the company’s ability to manage its capital structure, and other risks detailed in the company’s filings with the U.S. Securities and Exchange Commission. zSpace undertakes no obligation to update any forward-looking statements except as required by law.
Press Contact: Amanda Austin Senior Marketing Director,zSpace, Inc. press@zspace.com
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much additional financing did zSpace (ZSPC) announce on March 16, 2026?
zSpace announced an additional $4,301,075 senior secured convertible note on March 16, 2026. According to the company, this issuance supplements the original senior secured convertible note financing that began on April 10, 2025.
What will zSpace (ZSPC) use the proceeds from the $4.3M note for?
zSpace will use net proceeds to repay outstanding debt and strengthen working capital. According to the company, remaining funds will support general corporate purposes and maintain financial flexibility for its AR/VR education platform.
Is the newly issued zSpace (ZSPC) note convertible into common stock?
Yes, the additional senior secured note is convertible into the company’s common stock. According to the company, conversion terms follow the previously announced securities purchase agreement tied to the April 2025 financing.
How does the $4.3M note relate to zSpace’s prior financing from April 2025?
The March 16, 2026 note supplements a prior senior secured convertible note originally issued April 11, 2025 with a principal of $13,978,495. According to the company, the new note is issued under the same securities purchase agreement.
What shareholder impact could zSpace’s (ZSPC) convertible note have?
Conversion of the note into common stock could dilute existing shareholders if conversion occurs. According to the company, the note’s convertible feature means potential share issuance depending on conversion terms and timing.
Does the $4.3M financing affect zSpace’s debt structure immediately?
The financing increases secured convertible debt on the balance sheet immediately. According to the company, proceeds will repay some outstanding debt while adding a senior secured convertible obligation under the existing financing agreement.
