HONG KONG, Oct. 27, 2026 (GLOBE NEWSWIRE) — 3 E Network Technology Group Limited (Nasdaq: MASK) (the “Company” or “3 E Network”), a business-to-business (“B2B”) information technology (“IT”) business solutions provider committed to becoming a next-generation artificial intelligence (“AI”) infrastructure solutions provider, today detailed the capital allocation plan for the proceeds of its recently announced $5.0 million private placement (the “Private Placement”). In response to growing enterprise AI infrastructure demand, this financing is designed to strengthen the Company’s balance sheet and financial flexibility. The proceeds are expected to be allocated in accordance with the Company’s established strategic roadmap, focusing on underlying technology research and development (“R&D”), compute infrastructure construction, and supply chain working capital management.
Addressing the “Memory Wall” Bottleneck to Advance the Full-Stack AI Storage Strategy and Controller R&D
Within current AI compute architectures, data throughput and storage bottlenecks, recognized industry-wide as the “Memory Wall,” can represent significant constraints on enterprise-grade AI inference efficiency. Building upon the previously announced initial validation of its AI storage controller architecture and core data flow algorithms, a dedicated portion of the financing proceeds will be utilized to advance the proprietary controller into its next R&D phase. This includes advancing the front-end register-transfer level design and initiating field-programmable gate array prototyping.
This R&D investment is a component of 3 E Network’s “full-stack AI storage strategy.” The Company intends to progressively integrate the proprietary controller into hardware devices such as memory, solid-state drives, and all-flash servers. By optimizing chip-level data flow efficiency, the Company aims to deliver competitive, integrated hardware and software solutions to B2B clients, thereby strengthening its technological capabilities in AI infrastructure.
Advancing Early-Stage Infrastructure and Power Deployment at the Mikkeli Green Compute Center in Finland
In conjunction with the recently executed 9 MVA grid connection agreement, another primary use of the financing is to support the Company’s AI compute center project in Mikkeli, Finland. Following the confirmation of its core grid connection arrangement, the project is advancing into the infrastructure adaptation and early-stage engineering phase as planned.
Designated funds are expected to be used for early-stage site structural modifications to meet the engineering requirements of high-density AI servers regarding load-bearing capacity, thermal aisles, and physical space. Concurrently, the funds will support the planning of the internal power distribution network and the preliminary procurement of core power distribution and switchgear equipment. By securing critical long-lead-time components in advance, the Company aims to mitigate potential delays in the global supply chain. Furthermore, the technical team plans to use a portion of the proceeds to conduct internal network topology testing and the initial development of the compute orchestration architecture, with the aim of supporting the compute center’s transition to the server deployment and commercial operation phases according to schedule.
Optimizing Supply Chain Working Capital to Support Bulk Enterprise Hardware Fulfillment and Core Operations
In addition to technology and infrastructure projects, this financing is also intended to support the Company’s core operations. The cross-border distribution of bulk, high-end enterprise IT hardware (such as all-flash arrays and high-density storage servers) typically involves a prolonged cash conversion cycle and significant upfront working capital requirements.
Regarding the recently disclosed approximately $5.0 million core storage hardware order, the financing proceeds are expected to supplement the working capital required for supply chain operations. This measure is intended not only to assist the Company in securing more favorable commercial terms in procurement and absorbing supply chain lead-time fluctuations, but also to provide working capital support for existing large orders and potential future B2B bulk procurements, thereby supporting the cash flow management of the Company’s core business.
Management Participation Reflects Confidence in Long-Term Strategy
In this $5.0 million Private Placement, Dr. Tingjun Yang, the Company’s Chief Executive Officer, subscribed to approximately $2.1 million through an affiliated entity, representing over 40% of the total subscription amount. This transaction structure, which closely aligns management and shareholder interests, conveys to the capital markets a positive expectation from the management team regarding the Company’s current business fundamentals and the execution prospects of its dual-engine strategy.
Management Commentary
Dr. Tingjun Yang, Chief Executive Officer of 3 E Network, stated, “In the AI infrastructure sector, the ability to translate technological innovation into commercially viable solutions is critical for corporate development. The substantive participation of the management team in this financing reflects our confidence in the Company’s ability to execute its business plans. The Company will continue to adhere to a disciplined approach to capital allocation while steadily advancing our strategic objectives.”
Dr. Yang added, “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; by advancing the early-stage infrastructure of the Finnish center, we plan to secure medium-term compute service scale; and by progressing the R&D of the AI storage controller, we are committed to building long-term technological assets. The Company will ensure that capital is effectively deployed into business nodes with strategic compound value, with the objective of generating sustainable long-term value for our shareholders.”
About 3 E Network Technology Group Limited
3 E Network Technology Group Limited is a business-to-business (“B2B”) information technology (“IT”) business solutions provider committed to becoming a next-generation artificial intelligence (“AI”) infrastructure solutions provider. It upholds the industry consensus of “AI and energy symbiosis” and has a strong vision in the field of energy investment. The Company’s business comprises two main portfolios: the data center operation services portfolio and the software development portfolio. For more information, please visit the Company’s website at https://3emask.com/.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “assesses,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect the Company’s future results in the Company’s registration statement and other filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
3 E Network Technology Group Limited
Investor Relations Department
Email: ird@3emask.com
Website: https://3emask.com/
