Continues expansion of its self-mining
expansion and Bitcoin mining machine business in North America
SINGAPORE, Nov. 20,
2024 /PRNewswire/ -- Canaan Inc. (NASDAQ: CAN)
("Canaan" or the "Company" or "We"), a leading high-performance
computing solutions provider, today announced that it has entered
into a securities purchase agreement (the "Securities Purchase
Agreement") with an institutional investor (the "Buyer"), pursuant
to which the Company shall issue and sell to the Buyer up to 30,000
Series A-1 Preferred Shares (the "Series A-1 Preferred Shares") at
the price of US$1,000.00 for each
Series A-1 Preferred Share. Canaan agreed that the proceeds from
the sale of the Series A-1 Preferred Shares will be used by the
Company and/or its subsidiaries to manufacture or invest in digital
mining sites and equipment to be deployed or sold in North America, including any acquisition or
disposition of assets from or between subsidiaries. The closing of
the sale of the Series A-1 Preferred Shares under the Securities
Purchase Agreement was conditioned upon general customary closing
conditions.
The Company has adopted a certificate of designations (the
"Certificate of Designations") of Series A-1 Preferred Shares, par
value US$0.00000005 per share,
creating the Series A-1 Preferred Shares and providing for the
designations, preferences and relative, participating, optional or
other rights, and the qualifications, limitations or restrictions
thereof, of the Series A-1 Preferred Shares, which has become
effective upon such adoption.
On September 30, 2024, the Company
closed the third and final tranche of a Series A preferred shares
financing under a securities purchase agreement with the Buyer,
pursuant to which the Company agreed to issue and sell to the Buyer
up to 125,000 Series A Convertible Preferred Shares.
"I am proud of our continued partnership with this institutional
investor as I believe that their commitment to Canaan demonstrates
the growing opportunity for the Company," said Nangeng Zhang,
chairman and chief executive officer of Canaan. "In the year since
we began our partnership, Canaan has made significant progress on
our goals and is well-positioned as we head into what we believe
could be another bull market for Bitcoin. Investments like these
allow the Company to ensure the timely delivery of our products and
to partner with our customers on self-mining projects. The ability
to pursue multiple opportunities helps Canaan to be a strong
competitor and partner in the Bitcoin mining
industry."
The Securities Purchase Agreement contains customary
representations, warranties and agreements by the Company and the
Buyer, and indemnification obligations of the Company against
certain liabilities, including for liabilities under the Securities
Act of 1933, as amended. The provisions of the Securities Purchase
Agreement, including the representations and warranties contained
therein, are not for the benefit of any party other than the
parties to such agreement and are not intended as a document for
investors and the public to obtain factual information about the
current state of affairs of the Company. Rather, investors and the
public should look to other disclosures contained in the Company's
filings with the SEC.
The foregoing description does not purport to be complete and is
qualified in its entirety by reference to the full text of the
Securities Purchase Agreement and the Certificate of Designations.
The full text of the Securities Purchase Agreement and the
Certificate of Designations are to be filed as exhibits to the
Company's current report on Form 6-K dated on or around
November 20, 2024. Capitalized terms
used in this press release without definition shall have the
meanings given to them in the Securities Purchase Agreement, the
Certificate of Designations, and any amendments
thereto.
This press release is for informational purposes only and is
not an offer to sell or a solicitation of an offer to buy any
securities, which is made only by means of a prospectus supplement
and related prospectus. There will be no sale of these securities
in any jurisdiction in which such an offer, solicitation of an
offer to buy or sale would be unlawful.
About Canaan Inc.
Established in 2013, Canaan Inc. (NASDAQ: CAN), is a technology
company focusing on ASIC high-performance computing chip design,
chip research and development, computing equipment production, and
software services. Canaan has extensive experience in chip design
and streamlined production in the ASIC field. In 2013, Canaan's
founding team shipped to its customers the world's first batch of
mining machines incorporating ASIC technology in bitcoin's history
under the brand name Avalon. In 2019, Canaan completed its initial
public offering on the Nasdaq Global Market. To learn more about
Canaan, please visit https://www.canaan.io/.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
Canaan Inc.'s anticipated financing plans and its intended use of
proceeds contain forward-looking statements. Canaan Inc. may also
make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission ("SEC") on
Forms 20-F and 6-K, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about Canaan
Inc.'s beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: the
Company's goals and strategies; the Company's future business
development, financial condition and results of operations; the
expected growth of the bitcoin industry and the price of bitcoin;
the Company's expectations regarding demand for and market
acceptance of its products, especially its bitcoin mining machines;
the Company's expectations regarding maintaining and strengthening
its relationships with production partners and customers; the
Company's investment plans and strategies, fluctuations in the
Company's quarterly operating results; competition in its industry;
and relevant government policies and regulations relating to the
Company and cryptocurrency. Further information regarding these and
other risks is included in the Company's filings with the SEC. All
information provided in this press release and in the attachments
is as of the date of this press release, and Canaan Inc. does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law.
Investor Relations Contact
Canaan Inc.
Xi Zhang
Email: IR@canaan-creative.com
ICR, LLC.
Robin Yang
Tel: +1 (347) 396-3281
Email: canaan.ir@icrinc.com
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SOURCE Canaan Inc.