Benzinga | Apr 29, 2021 09:29AM EDT

Canaan Announces Entry Into Agreement For Registered Direct Placement Of Approximately $170M Of Its ADSs And Warrants

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.