Provides Company with access to up to US$200 million
SINGAPORE, March 10,
2025 /PRNewswire/ -- Canaan Inc. (NASDAQ: CAN)
("Canaan" or the "Company"), an innovator in crypto
mining, today announced that the Company had entered into a
Securities Purchase Agreement (the "Agreement") with an
institutional investor (the "Buyer"), providing the Company with
total gross proceeds of up to US$200
million through a Series A-1 Preferred Shares financing (the
"Preferred Shares Financing"). First tranche closing under the
Preferred Shares Financing was completed on March 10, 2025, where an initial US$100 million has been received. An additional
US$100 million is expected to be
received in the near term in connection with the closing of the
second tranche, subject to certain terms and conditions. We remind
investors to review our recent public filings related to the
Preferred Shares Financing.
The net proceeds from the financing will be used to fund
activities necessary to support the Company's growth, including
research and development, expansion of production scale,
manufacturing or investing in digital mining sites and equipment
for deployment in North America
and sales globally, including any acquisition or disposition of
assets from or between the Company's subsidiaries, and other
general corporate purposes.
"We are grateful for the ongoing support of our long-term
investor, whose latest investment reflects its confidence in
Canaan's strategy and in the future of Bitcoin," said
Nangeng Zhang, chairman and chief executive officer of Canaan. "In
our February Bitcoin mining and operational update,
released on March 3, we announced our
preliminary unaudited financial results for the fourth quarter
ended December 31, 2024, reporting
expected revenue that exceeded our guidance and an anticipated
narrowed gross loss. Despite recent Bitcoin price
fluctuations, we remain confident in our outlook and reaffirm our
revenue guidance and expansion target of 10 EH/s self-mining
capacity in North America by
mid-2025. Our confidence is driven by sustained high demand for our
products and our strong foundation in R&D, supply chain
management, and financial compliance as a public company. We
believe that this investment will enable us to accelerate R&D,
strengthen our wafer supply chain, and seize additional mining
opportunities.
"Because we believe our stock price is deeply undervalued, we
have maintained discipline in our at-the-market (the "ATM")
fundraising, with an average selling price above US$2."
Zhang continued, "At current stock
price levels, we view the US$200 million transaction as a strategic
alternative that complements our existing ATM program. We will
share more details regarding our financials in our upcoming
quarterly earnings call."
The 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 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
Company's current report on Form 6-K dated March 10, 2025, announcing the execution of the
Agreement and the closing of the first tranche financing under the
Agreement.
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.
