CCH Holdings raises $1.15M in convertible note as it eyes data centre pivot

CCH Holdings (Nasdaq: CCHH), a Malaysia-based specialty hotpot restaurant chain, has closed the initial tranche of a convertible note and warrant offering for $1,150,000 in gross proceeds. The note carries a principal amount of $1,250,000 and is convertible into Class A ordinary shares.

The note and warrants were sold to a single institutional investor through a private offering under a Securities Purchase Agreement. The warrants let the investor buy shares worth $500,000, at an exercise price set at 150% of the note's initial conversion price.

The agreement provides for a second closing of another $1,250,000 in note principal for a further $1,150,000 in proceeds, subject to a $115,000 discount. That tranche depends on the SEC declaring a resale registration statement effective, which CCH must file within 15 business days of the initial closing.

CCH runs Chicken Claypot and restaurant franchise operations, but it is pursuing a "dual-engine growth model" that pairs its restaurants with digital infrastructure. It is targeting technical consulting and maintenance services for data centre projects across Southeast Asia.

This is a quick re-raise, with the deal structured so a matching second tranche can follow as soon as regulators sign off. For a small-cap restaurant operator, the convertible route offers fast capital to fund an ambitious move into data centres — a bet on where Southeast Asian demand is heading.