Canaan Inc., a technology company specializing in ASIC high-performance computing chip design, has successfully closed the third and final tranche of its preferred shares financing, raising an additional $50 million. The financing, which was completed on September 27, 2024, involved the issuance of 50,000 Preferred Shares at $1,000 each. The proceeds are earmarked for manufacturing or investing in digital mining sites and equipment in North America. This follows two previous tranches that raised $25 million and $50 million respectively. The third tranche was issued as restricted securities, with the Buyer acknowledging no obligation on Canaan's part to register these shares. The Third Closing Shares are convertible into Class A Ordinary Shares after six months, with sales by the Buyer limited to 10% of the weekly trading...Show More

Canaan Inc., a technology company specializing in ASIC high-performance computing chip design, has successfully closed the third and final tranche of its preferred shares financing, raising an additional $50 million. The financing, which was completed on September 27, 2024, involved the issuance of 50,000 Preferred Shares at $1,000 each. The proceeds are earmarked for manufacturing or investing in digital mining sites and equipment in North America. This follows two previous tranches that raised $25 million and $50 million respectively. The third tranche was issued as restricted securities, with the Buyer acknowledging no obligation on Canaan's part to register these shares. The Third Closing Shares are convertible into Class A Ordinary Shares after six months, with sales by the Buyer limited to 10% of the weekly trading volume. Amendments to the securities purchase agreement include an increased Fixed Conversion Price of $4.00 for the third tranche, up from 120% of the Weighted Average Price for the first two tranches, and the addition of a 90-day average SOFR to the conversion amount calculation. Canaan's ADSs closed at $1.06 on the date of the final tranche closing. The company, which went public on the Nasdaq Global Market in 2019, has a history of pioneering ASIC technology in bitcoin mining machines since 2013.