Canaan has closed the third and final tranche of its preferred shares financing, raising additional gross proceeds of $50 million at $1,000 per share. The proceeds will be used to manufacture or invest in digital mining sites and equipment in North America. This completes the total financing of $125 million, following the first tranche of $25 million in December 2023 and second tranche of $50 million in January 2024.The terms for the third tranche include significant modifications: shares are issued as restricted securities with no registration obligation, a 6-month conversion lockup period, and weekly sales limits of 10% of trading volume. The Fixed Conversion Price has been increased to $4.00, compared to the current ADS price of $1.06, and includes a 90-day SOFR factor (currently 5.32675%) in conversion calculations.The securities were sold under amended terms executed on September 26, 2024, including a global amendment to the Securities Purchase Agreement and modified Certificate of Designations. The agreement contains customary representations and warranties, with the converted shares becoming available for ADS conversion after the lockup period.

Canaan has closed the third and final tranche of its preferred shares financing, raising additional gross proceeds of $50 million at $1,000 per share. The proceeds will be used to manufacture or invest in digital mining sites and equipment in North America. This completes the total financing of $125 million, following the first tranche of $25 million in December 2023 and second tranche of $50 million in January 2024.The terms for the third tranche include significant modifications: shares are issued as restricted securities with no registration obligation, a 6-month conversion lockup period, and weekly sales limits of 10% of trading volume. The Fixed Conversion Price has been increased to $4.00, compared to the current ADS price of $1.06, and includes a 90-day SOFR factor (currently 5.32675%) in conversion calculations.The securities were sold under amended terms executed on September 26, 2024, including a global amendment to the Securities Purchase Agreement and modified Certificate of Designations. The agreement contains customary representations and warranties, with the converted shares becoming available for ADS conversion after the lockup period.