Canaan Inc. (CAN) Secures Securities Purchase Agreement for North American Expansion
Tony Kim Nov 20, 2024 11:11
Canaan Inc. has finalized a securities purchase agreement to bolster its digital mining operations and equipment production in North America, securing investment from a key institutional partner.
Canaan Inc. (NASDAQ: CAN), a prominent player in high-performance computing solutions, has announced the execution of a securities purchase agreement with an institutional investor. This strategic move is aimed at expanding its digital mining operations and Bitcoin mining machine business in North America, as reported by PR Newswire.
Details of the Agreement
Under the terms of the agreement, Canaan will issue and sell up to 30,000 Series A-1 Preferred Shares at a price of US$1,000 each. The proceeds are earmarked for manufacturing or investing in digital mining sites and equipment for deployment or sale in North America. Canaan's CEO, Nangeng Zhang, expressed confidence in the partnership, highlighting the investor's commitment as a testament to the company's growing opportunities.
The Series A-1 Preferred Shares have been established through a certificate of designations, which outlines their specific rights and restrictions. This agreement follows the completion of the third tranche of a Series A preferred shares financing with the same investor, involving up to 125,000 Series A Convertible Preferred Shares.
Strategic Expansion in North America
This investment aligns with Canaan's strategy to strengthen its presence in the competitive Bitcoin mining industry. The company believes that the current market conditions could herald another bull run for Bitcoin, emphasizing the importance of timely product delivery and strategic partnerships in self-mining projects.
Legal and Financial Framework
The agreement includes customary representations, warranties, and indemnification obligations under the amended Securities Act of 1933. Not intended for public consumption, these provisions serve the parties involved in the agreement, with further details available in Canaan's filings with the SEC.
About Canaan Inc.
Founded in 2013, Canaan Inc. is renowned for its ASIC high-performance computing chip design and production. The company made history with the release of the first ASIC-based mining machines under the Avalon brand. In 2019, Canaan went public on the Nasdaq Global Market, marking a significant milestone in its growth journey.
The company's forward-looking statements underscore its strategies and expectations in the rapidly evolving cryptocurrency sector. Investors are advised to review Canaan's SEC filings for comprehensive risk factors and financial details.
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