3E Network Secures New Funding for Ambitious AI Infrastructure Pivot

HONG KONG – January 09, 2026 – 3E Network Technology Group Limited (Nasdaq: MASK), a Hong Kong-based IT solutions provider, today announced the completion of a convertible promissory note offering, securing crucial capital to accelerate its strategic transformation into a next-generation artificial intelligence (AI) infrastructure provider. The move signals growing investor confidence in the company's vision to compete in the high-stakes global AI market.

The company confirmed the subsequent closing of the offering, which, combined with an initial closing in December 2025, brings the total gross proceeds to US$1,840,000. This injection of funds is earmarked to bolster 3E Network's transition from a traditional business-to-business (B2B) IT firm to a key player in the foundational technology powering the AI revolution.

Fueling the AI Engine with Strategic Capital

The financing was structured as a US$2 million convertible promissory note offering with an institutional investor, managed by placement agent Boustead Securities, LLC. The deal was executed in two stages. The initial closing on December 18, 2025, involved a note with a principal amount of US$1.5 million, yielding US$1.38 million in gross proceeds. The subsequent closing, announced today, added a US$500,000 principal note for an additional US$460,000 in gross proceeds.

The structure of the deal as an "original issue discount" note, where the funds received are less than the principal face value, is a common financing mechanism that effectively incorporates an interest component for the investor. More importantly, the funds provide tangible fuel for 3E Network's ambitious AI strategy. The company has already taken concrete steps in this direction, moving beyond its established portfolios in data center operation services and software development.

A prime example of this strategic pivot is the Master Services Agreement with Finland's Orka Technologies Oy. This three-year agreement aims to develop a significant AI data center project in Finland, starting with an initial 6-megawatt (MW) capacity and a planned annual expansion of at least 10 MW. This project is a clear indicator of where the newly raised capital may be deployed—building the physical, high-performance computing infrastructure necessary for demanding AI workloads. The company's focus on what it terms "AI and energy symbiosis" further suggests a forward-looking approach to creating sustainable and efficient AI data centers, a growing concern in the energy-intensive tech industry.

The Convertible Conundrum: Confidence vs. Dilution

The choice of a convertible promissory note is a strategic one that carries a dual message. On one hand, it signals strong confidence from the institutional investor, who is essentially betting on the future appreciation of 3E Network's stock. The note is convertible into the company's Class A ordinary shares, aligning the investor's interests with long-term growth. The successful completion of the offering, contingent upon an effective resale registration statement for the conversion shares, demonstrates a sophisticated approach to capital raising.

On the other hand, convertible financing inherently introduces the possibility of future shareholder dilution. When the investor converts the debt to equity, the number of outstanding shares increases, which can dilute the ownership stake of existing shareholders. This trade-off—immediate capital for potential future dilution—is a classic challenge for growth companies investing heavily in new ventures. For 3E Network, it is a calculated risk deemed necessary to fund its capital-intensive AI infrastructure goals.

Initial market reaction appears positive. Following the announcement, MASK's stock saw a modest jump of 7.3% in after-hours trading, suggesting that investors view the infusion of capital and the strategic clarity it supports as a net positive. However, this comes against a backdrop of significant historical volatility for the stock, which had seen a substantial decline in the six months prior to the financing. Financial data indicates the company maintains a healthy balance sheet with more cash than debt, which likely provided the foundation of trust for this new investment.

From Regional IT Provider to Global AI Contender

This financing marks a critical juncture in 3E Network's evolution. Founded as a B2B IT solutions provider in Hong Kong, the company is now leveraging its Nasdaq listing to attract international capital for a bold leap onto the global stage. The transition is not without its challenges, as the AI infrastructure landscape is fiercely competitive. The market is dominated by hyperscale cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud, as well as hardware titans like Nvidia, which command the GPU market essential for AI training.

3E Network's strategy appears to be one of finding a niche and executing with precision. By partnering with specialists like Orka Technologies and focusing on building dedicated AI data centers in strategic locations like Finland, the company can differentiate itself from the larger, more generalized players. Its existing expertise in data center operations and software development provides a solid foundation, potentially allowing it to offer integrated solutions that are more tailored to specific enterprise AI needs.

The move reflects a broader trend of technology firms in Asia looking beyond their home markets to compete in next-generation technology sectors. By securing U.S. institutional funding and launching projects in Europe, 3E Network is positioning itself not just as a Hong Kong company, but as an emerging international player in the AI ecosystem.

The success of this ambitious pivot will ultimately depend on flawless execution. The capital is now in place, but building and operating state-of-the-art AI data centers, attracting top-tier talent, and securing major clients in a crowded market are formidable tasks. The coming months will be critical in determining whether this infusion of capital can successfully transform 3E Network's vision for a future in AI infrastructure into a tangible and profitable reality.