Jiuzi Holdings announced a memorandum of understanding with Morgan International Finance to raise up to $90 million by issuing shares at $3.00 each. The deal is non‑binding and will be finalized in definitive agreements.
The infusion comes as Jiuzi’s financial health has deteriorated sharply. Revenue fell 86.1% over the past three years, and the company posted negative operating and net margins. Its Altman Z‑Score of –25.81 places it in the distress zone, underscoring the urgency of the capital raise.
Management said the capital will support a pivot from its core new‑energy vehicle business to a broader blockchain and Web3 strategy. The company plans to build secure crypto‑asset custody infrastructure, pursue strategic acquisitions in the digital‑asset storage space, and expand its Web3 ecosystem.
Morgan International Finance, a private‑equity firm with a track record of investing in technology and infrastructure, will provide the funding at a premium to Jiuzi’s current market price. The transaction will involve a mix of newly issued shares and shares transferred by existing shareholders, giving Morgan a significant ownership stake.
The announcement follows a series of fundraising efforts, including a $4 million direct offering and a partnership with EXSAT.NETWORK LTD to develop a cryptocurrency depository service. Jiuzi’s market capitalization was about $2.27 million on the day of the announcement, so the $90 million represents a substantial increase in equity and liquidity.
While the deal is still subject to due diligence and regulatory approval, analysts view the financing as a lifeline that could stabilize the company’s balance sheet and enable it to execute its strategic transformation. However, the high valuation premium and the company’s ongoing losses suggest that the investment will need to be coupled with disciplined cost management and a clear path to profitability.
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