Classover Holdings Inc (NASDAQ:KIDZ) reported that it has signed an equity purchase facility agreement with Chardan Capital Markets that allows the company to sell up to $100 million of its Class B common stock, subject to customary terms and conditions including stockholder approval. The announcement coincided with an 18.3% increase in the company’s shares in premarket trading on Friday.
According to the company, proceeds from the facility will be directed toward expanding its presence in AI infrastructure and cloud services. Classover specified multiple deployment areas for the capital: development of AI compute infrastructure focused on high-performance GPU assets; advancement of the NeoCloud platform and related cloud services operations; and investments in data center projects and strategic partnerships aligned with the company’s growth plan.
As part of the planned strategic repositioning, Classover said it intends to adopt a new corporate name - "KIDZ AI Inc." - to reflect the company’s emphasis on GPU high-performance computing, NeoCloud platforms, AI-native cloud services, and related data center ecosystems.
In a statement accompanying the financing announcement, Chief Executive Officer Stephanie Luo said, "We believe this facility will be a decisive turning point for Classover. We are positioning the Company to become an important participant in the rapidly growing AI infrastructure sector. Our goal is to build a scalable ecosystem across GPU high-performance computing, AI data centers, and NeoCloud compute platforms."
Luo added that the financing is intended to give the company flexibility while it evaluates a range of potential initiatives, including GPU deployment, AI inference hosting, and model deployment services. She emphasized that those initiatives remain contingent on market conditions, capital availability, execution of definitive agreements and applicable regulatory requirements.
Classover characterized the facility as a source of capital flexibility to support its evaluation and potential execution of strategic opportunities in AI infrastructure and cloud-based compute services. The company did not provide additional financial projections or a timetable for the planned rebrand and project rollouts in the announcement.
Sectors mentioned: AI infrastructure, cloud services, high-performance GPU computing, data centers.