© Reuters BTC Miner Manufacturer Canaan To Sell Class A Ordinary Shares ADSs
- Canaan to sell Class A ordinary shares with an offering price of up to $750 million.
- The mining manufacturer will most likely issue 436,105,757 ADSs for R&D, production, etc.
- Canaan’s CFO expects Bitcoin’s value to fall and will focus on cash flow currently.
China-based Blockchain servers and ASIC microprocessors manufacturing company, Canaan released a statement on November 26, revealing that it will offer and sell ADSs representing their Class A ordinary shares having an aggregate offering price of up to US$750,000,000.
The publication states that Canaan has entered into an At The Market Offering Agreement, as amended, or the sales agreement, with H.C. Wainwright & Co., LLC, or Wainwright or the Sales Agent, amended on November 23, 2022.
It continues that Canaan will sell their American depositary shares or the ADSs, each one representing 15 of their Class A ordinary shares, par value US$0.00000005 per share. It also shared that it will offer and sell ADSs representing its 6,400,563,270 Class A ordinary shares having an aggregate offering price of up to US$750,000,000, issued for research and development, expansion of production scale, and other purposes.
The statement also confirms that neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities
Moreover, the offering clarifies that 436,105,757 ADSs will remain outstanding immediately after the offering, assuming the sale of ADSs in the aggregate amount of US$750,000,000 at an assumed offering price of US$2.70 per ADS, which was the closing price on the on November 23, 2022.
Meanwhile, Canaan’s Chief Finance Officer, James Cheng had previously mentioned that they anticipate Bitcoin to fall, energy prices to rise, and mining companies’ cash pressures to increase. With deteriorating market conditions in the next two quarters, Canaan said it will focus on securing cash flow.
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