Canaan Announces Entry into Agreement for Registered Direct Placement of Approximately US$170.0 Million of its ADSs and Warrants
BEIJING, April 29, 2021 (GLOBE NEWSWIRE) -- Canaan Inc. (NASDAQ: CAN) ("Canaan" or the "Company"), a leading high-performance computing solutions provider, today announced it has entered into a securities purchase agreement with certain institutional investors for a registered direct placement of approximately $170.0 million of its American Depositary Shares (“ADS”), each ADS representing 15 Class A ordinary shares of the Company, par value US$0.00000005 per share (the “Class A Ordinary Shares”), or US$12.60 per ADS. The Company has also agreed to issue to the investors warrants (the “Warrants”) to purchase up to an aggregate of 4,047,620 ADSs (representing 60,714,300 Class A Ordinary Shares), at an exercise price of $16.38 per ADS, which Warrants will have a term of three years from the date of issuance. The offering is expected to close on or about May 3, 2021, subject to customary closing conditions.
The net proceeds from this offering will be used for research and development and expansion of production scale, and working capital and general corporate purposes as disclosed in the prospectus supplement to be filed in connection with the offering.
FT Global Capital, Inc. acted as the sole bookrunning placement agent and Valuable Capital Limited acted as co-placement agent for the transaction. These securities are being offered through a prospectus supplement pursuant to the Company's effective shelf registration statement and the base prospectus contained therein. A shelf registration statement (SEC Filing No. 333-255470) relating to these securities has been filed with the Securities and Exchange Commission (the "SEC") on April 23, 2021 and became effective automatically pursuant to SEC Rule 462(e).
A prospectus supplement related to the offering will be filed with the SEC. This press release does not constitute an offer to sell or the solicitation of an offer to buy, and these securities cannot be sold in any state in which this offer, solicitation, or sale would be ulawful prior to registration or qualification under the securities laws of any such state. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.
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