The New York-based company, specializing in online education for elementary and middle school students, has recently entered into an agreement with Solana Growth Ventures LLC, the strategic division dedicated to supporting the development of the Solana ecosystem. The agreement involves the issuance of up to $500 million in senior secured convertible bonds. These debt instruments provide investors the option to convert their investment into company shares at a later date, thereby becoming shareholders. The term “senior” signifies that, in the event of the company’s bankruptcy, bondholders have repayment priority over common shareholders.
The agreement also stipulates that investors will have the option to convert the bonds into Class B common shares of Classover at a 200% premium over the closing stock price, calculated prior to the conversion date. Additionally, the edtech company has secured an initial financing agreement of $11 million through convertible bonds, subject to customary closing conditions. This marks a crucial initial step toward establishing Solana reserves within the company. Following the announcement, the technology firm’s shares, traded under the ticker KIDZ, surged by 40%, closing at $3.72 on Monday. However, the stock declined during after-hours trading and continues to show a 48% loss on the monthly chart.
The company’s decision to establish an internal Solana reserve comes at a critical time, as the tech firm is currently facing liquidity challenges. Data from InvestingPro highlights a current liquidity ratio of just 0.02, indicating significant pressure on working capital. In this context, the recent financing and partnership with Solana Growth Ventures provide essential support to help the company navigate its liquidity crisis. According to the agreement, Classover Holdings will allocate at least 80% of the net proceeds from the bonds toward purchasing SOL tokens. This transaction is separate from the previous $400 million stock purchase agreement. As a result, the company’s total financial capacity allocated to the Solana reserve reaches $900 million. Last month, the company had already initiated efforts to integrate Solana into its balance sheet by acquiring 6,472 SOL tokens valued at approximately $1.05 million prior to the closing of the latest agreement.
