3 E Network details use of $5M private placement proceeds

3 E Network Technology Group Limited (Nasdaq: MASK) has outlined how it plans to allocate the $5.0 million raised through a recent private placement, according to a company statement.

The Hong Kong-based IT solutions provider said proceeds will be directed toward three areas: artificial intelligence storage controller research and development, early-stage infrastructure work at a compute center in Mikkeli, Finland, and working capital to support enterprise hardware orders.

On the R&D side, the company plans to advance its proprietary AI storage controller, including front-end register-transfer level design and field-programmable gate array prototyping. The company describes this as part of a broader "full-stack AI storage strategy" that aims to integrate the controller into memory, solid-state drives, and all-flash servers.

For the Finland project, funds are expected to cover site structural modifications, internal power distribution planning, and procurement of power distribution and switchgear equipment. The company previously announced a 9 MVA grid connection agreement for the Mikkeli site.

A portion of the proceeds will also support working capital tied to a previously disclosed approximately $5.0 million enterprise storage hardware order, as well as potential future bulk procurement activity.

Chief Executive Officer Dr. Tingjun Yang participated in the private placement, subscribing to approximately $2.1 million through an affiliated entity, representing more than 40% of the total raise.

Dr. Yang stated, "The allocation of this $5.0 million has clear strategic directives: by supplementing working capital, we aim to safeguard current hardware deliveries and maintain a healthy cash position."

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