3E Network Technology Group Limited (NASDAQ: MASK) completed an initial closing of $920,000 from a $1.3 million convertible note agreement with an institutional investor, according to a company statement.

The Hong Kong-based IT solutions provider entered into the securities purchase agreement on May 1, 2026. Under the terms, the company issued a senior secured 8% original issue discount convertible promissory note with a principal amount of $1 million for gross proceeds of $920,000.

The agreement includes a second closing for an additional $300,000 in principal for $276,000 in gross proceeds, contingent on the effectiveness of a resale registration statement. The total transaction involves up to $1.3 million in principal amount for aggregate gross proceeds of $1.196 million.

The company also issued a warrant to purchase up to 265,198 Class A ordinary shares at an exercise price of $5.00 per share. The warrant is exercisable from May 1, 2026, through May 1, 2030, subject to potential extensions.

3E Network Technology agreed to file a registration statement with the Securities and Exchange Commission within 15 business days of closing to cover the resale of shares issuable upon conversion of the note. The company and its subsidiaries entered into a guarantee agreement to secure the transaction obligations.

Boustead Securities served as placement agent for the offering.

3E Network Technology operates as a business-to-business IT solutions provider and describes itself as working toward becoming an AI infrastructure solutions provider. The company operates data center services and software development portfolios.