Canaan, China’s main cryptocurrency mining firm, will quickly launch a $10 million share repurchase program.On Sept. 8, the Nasdaq-listed firm form
Canaan, China’s main cryptocurrency mining firm, will quickly launch a $10 million share repurchase program.
On Sept. 8, the Nasdaq-listed firm formally introduced that its board of administrators has licensed a share repurchase program to repurchase as much as $10 million value of its American depositary shares, or ADSs.
In accordance with the announcement, Canaan will likely be repurchasing 15 Class A strange shares and/or Class A strange shares over the subsequent 12 months beginning Sept. 22.
Below the share repurchase program, the mining big is allowed to repurchase its ADSs “sometimes” by means of open market transactions at prevailing market costs, privately negotiated transactions, block trades or “any mixture thereof,” the agency’s executives mentioned.
Within the announcement, Canaan’s representatives mentioned that repurchase transactions will likely be carried out in compliance with Rule 10b5-1 and/or Rule 10b-18 below the Securities Change Act of 1934. The variety of repurchased ADSs and the schedule of repurchases will rely on a number of elements like value, buying and selling quantity, common market situations, in addition to Canaan’s working capital necessities and common enterprise situations, the corporate’s reps famous.
Often known as a share buyback, a share repurchase is a choice by an organization to purchase again its personal shares from the market. Corporations often repurchase shares to extend the worth of the inventory to enhance their monetary statements.
Headquartered in China, Canaan is the primary ever cryptocurrency mining agency that was listed on a United States change. In November 2019, Canaan carried out an preliminary public providing on main inventory change Nasdaq, elevating $90 million by 10,000,000 shares for $9 every, which was reportedly over 75% lower than anticipated initially.
Canaan’s inventory suffered a significant drop since itemizing on Nasdaq, with shares by no means going larger than $9. In March 2020, CAN inventory collapsed to beneath $three after traders filed a category motion swimsuit in opposition to the agency. The lawsuit stipulated that Canaan made deceptive statements relating to its monetary well being.
After recovering as much as $6 in Might 2020, Canaan inventory has seen a lot of consecutive sell-offs, main the inventory’s value to as little as $1.9 on Sept. 4, in line with knowledge from Nasdaq.
CAN all-time value chart. Supply: Nasdaq
Cointelegraph reached out to Canaan with extra queries relating to the share repurchase program. This text will likely be up to date pending any new info from the corporate.
Canaan’s share repurchase plans come amid purported enhancements within the firm’s enterprise. In late August, Canaan launched its unaudited monetary Q2 2020 outcomes, reporting development in gross revenue each yr on yr and quarter on quarter. The corporate additionally considerably lowered its web loss from 263 million Chinese language renminbi ($38 million) in Q2 2019 to 16.Eight million renminbi ($2.Four million) in Q2 2020.