3 E Network Plans Uses for $5 Million Private Placement Proceeds

3 E Network Technology Group Limited plans to use $5 million in private placement proceeds for AI storage research, a Finland compute center and hardware operations, with no dollar breakdown by use.

The company outlined the plan Oct. 27 at 7:50 a.m. ET (11:50 UTC). Controller research is expected to include register-transfer-level design and field-programmable gate array prototyping. The company also plans to integrate the controller into memory, solid-state drives and all-flash servers.

At its planned compute center in Mikkeli, Finland, the company expects to fund site modifications, power-distribution planning and preliminary equipment procurement. Its Finland subsidiary signed a 9-megavolt-ampere grid-connection agreement on Oct. 13.

The working-capital allocation is tied in part to an approximately $5 million enterprise storage hardware order. A wholly owned subsidiary began shipping the first batch on Oct. 22. Chief Executive Officer Dr. Tingjun Yang said the funds are intended to “safeguard current hardware deliveries and maintain a healthy cash position.”

The private-placement agreement covers 2,751,789 Class A ordinary shares at an approximate $1.817 per share, on a post-consolidation basis, for $5 million in gross proceeds. The agreement makes issuance conditional and bars it before Oct. 30. The company has not disclosed when it expects to spend the funds or how much would go to each planned use.