Classover secures $500 million for Solana treasury strategy

NEW YORK - Classover Holdings Inc. (NASDAQ:KIDZ, KIDZW), an educational technology company with a current market capitalization of $63 million, has entered into a securities purchase agreement with Solana Growth Ventures LLC for up to $500 million in senior secured convertible notes. This financial move is part of Classover’s strategy to build a Solana (SOL)-based treasury reserve. According to InvestingPro data, the company operates with moderate debt levels but faces challenges with short-term liquidity, making this funding crucial for its operations.

The agreement stipulates an initial closing and funding of $11 million, which is expected to occur upon meeting customary closing conditions. The convertible notes allow the holder to convert them into Classover’s Class B common stock at an initial conversion price of 200% of the stock’s closing price on the day before the closing date, with potential adjustments as specified in the notes. This financing comes at a critical time, as InvestingPro analysis shows the company’s current ratio stands at just 0.02, indicating significant pressure on working capital.

Classover is bound by the agreement to allocate up to 80% of the net proceeds from the notes towards purchasing SOL, following certain terms and limitations. This initiative complements Classover’s prior $400 million equity purchase agreement, bringing its total potential financing capacity to $900 million to support its SOL acquisition strategy.

Before this agreement, Classover had already embarked on its SOL reserve strategy by purchasing 6,472 SOL for approximately $1.05 million. The company is also exploring the acquisition of discounted blocks of locked tokens as part of its treasury strategy.

Ms. Luo, the CEO of Classover, has expressed that this agreement is a significant milestone for the company’s strategic initiative and highlights Classover’s commitment to integrating SOL into its treasury operations. Chardan is serving as the financial advisor and sole placement agent for the offering.

Further details on the purchase agreement and the terms of the notes can be found in Classover’s Current Report on Form 8-K, which will be filed with the Securities and Exchange Commission and is accessible to the public.

Founded in 2020, Classover specializes in live online courses for K-12 students globally and aims to redefine education through its programs and AI technology. The company faces significant operational challenges, with InvestingPro data showing a 102% year-over-year revenue decline and an overall Financial Health Score rated as ’WEAK’. Subscribers to InvestingPro can access 8 additional key insights about Classover’s financial position and growth prospects.

This press release contains forward-looking statements, which involve risks and uncertainties. Classover’s actual future results and financial position may differ from what is projected due to various factors, including market acceptance and changes in laws or regulations.

The information in this article is based on a press release statement from Classover Holdings, Inc.

In other recent news, Classover Holdings, Inc. announced an increase in the annual salary of its Chief Financial Officer, Yanling Peng, to $156,000. This decision, effective from May 1, 2025, was approved by the company’s Board of Directors and Compensation Committee. The salary adjustment was officially disclosed in a Form 8-K filing with the Securities and Exchange Commission. This development highlights a strategic decision by Classover Holdings’ governing bodies concerning executive compensation. The filing also reiterated Classover’s status as an emerging growth company. These recent developments reflect the company’s ongoing financial strategies and governance practices. The information was made available through a press release statement from Classover Holdings, Inc.

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