Cryptocurrency mining software particular built-in circuit (ASIC) producer Canaan filed with the U.S. Securities and Alternate Fee (SEC) to difficulty round $12.four million value of shares to its staff.
In accordance with the S-Eight type, filed with the SEC on Might 27, Canaan is seeking to difficulty almost $12.four million of sophistication A extraordinary shares with a most providing worth of $0.24 per share.
As Cointelegraph reported in late November 2019, Canaan raised $90 million by promoting 10,000,000 shares for $9 every in its preliminary public providing (IPO). In accordance with Google Finance information, as of press time the agency’s inventory had misplaced 76% of its worth because the IPO and is now value $2.16.
Canaan faces controversy over alleged doubtful practices
In accordance with early March reviews, Canaan misrepresented its potential income for 2020 to draw traders to its IPO. Shortly thereafter, investor rights-focused regulation agency Rosen Regulation Agency launched a class-action lawsuit towards the corporate. The agency is accused of creating false and deceptive statements that resulted within the traders struggling damages.
As a Cointelegraph evaluation on the matter defined, one month earlier than the IPO the corporate introduced a “strategic partnership” with Hong Kong exchange-listed firm Grandshores. The agency was supposed to buy as much as $150 million value of Canaan mining gear.
Grandshores ASIC order would symbolize virtually all of Canaan’s trailing income of $177 million. Analysts additionally declare that the consumer had no solution to truly follow-through with the deal, as the corporate has solely a $50 million market cap and $16 million of money.