zSpace shares fall 14.70% premarket as $3M investment raises dilution concerns amid revenue decline.

zSpace, Inc. (NASDAQ: ZSPC) fell 14.70% in premarket trading following the announcement of a $3 million strategic investment from Planet One Education via convertible preferred stock and warrants. The funding, intended to strengthen zSpace’s balance sheet and support international expansion, included 1.5 million shares at $2.00 each and 1 million warrants with a $3.00 exercise price. While the partnership aims to scale STEM and vocational training initiatives globally, investors appeared concerned about potential dilution risks and zSpace’s recent financial performance, which included a 38% year-over-year revenue decline in Q3 2025. The move also coincided with ongoing insider selling and mixed hedge fund activity, contributing to the sharp premarket selloff.