TLDR
- Autozi (AZI) surged 100.88% in after-hours trading to $2.29 after announcing a convertible note financing deal worth up to $5.25 million
- The initial tranche of $2.75 million closed on June 23, 2026, with an institutional investor holding an option for an additional $2.5 million within 21 months
- Notes carry a 9.25% interest rate and are convertible into Class A ordinary shares at market-based pricing
- Autozi plans to use the funds for M&A in China’s auto parts supply chain, a cross-border supply chain platform, and R&D in digital automotive services
- The stock had dropped 99.14% over the prior 12 months and was trading near its 52-week low of $1.01 before the announcement
Autozi Internet Technology (AZI) surged more than 100% in after-hours trading on Wednesday after announcing a convertible note deal worth up to $5.25 million. The stock closed the regular session at $1.14, down 3.39%, before jumping to $2.29 following the news.
Autozi Internet Technology (Global) Ltd., AZI
The deal was signed on June 22, 2026, with an undisclosed institutional investor. The initial $2.75 million note closed on June 23.
The notes carry a 9.25% interest rate and include resettable, anti-dilution-linked conversion pricing. That means the investor has flexibility in how and when to convert the notes into Class A ordinary shares, which could lead to equity dilution down the road.
The institutional buyer also holds an option to trigger an additional $2.5 million in notes within 21 months of the initial closing. Womble Bond Dickinson acted as Autozi’s U.S. legal counsel on the deal.
What Autozi Plans to Do With the Money
CEO Dr. Houqi Zhang said the capital will be deployed across three areas: mergers and acquisitions within China’s auto parts supply chain, building a cross-border supply chain platform for international expansion, and increased R&D investment in digital and intelligent automotive platforms.
The company is positioning itself to consolidate in the Chinese automotive services market while also reaching beyond its home market.
That’s an ambitious list for a company with a market cap of just $5.14 million at Wednesday’s close — though the after-hours move pushed that number significantly higher.
A Stock Coming Off a Rough Year
The context here matters. AZI had dropped 99.14% over the prior 12 months and was trading near its 52-week low of $1.01 before Wednesday’s announcement. The 52-week high sits at $292.50 — a stark contrast to where the stock has been lately.
The RSI stands at 42.32, reflecting a stock that had been under consistent pressure.
The technical sentiment signal is listed as Sell.
One after-hours pop doesn’t change those fundamentals overnight. The financing does give the company some runway, but the notes’ conversion terms mean existing holders could face dilution as the deal plays out.
At the time of the announcement, the company’s market cap sat at approximately $80.33 million on a fully diluted basis per TipRanks data, with the regular session cap at $5.14 million per Benzinga data — a discrepancy that reflects the complexity of AZI’s capital structure.
The stock closed the regular session on Wednesday at $1.14.
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