Canaan Announces Entry into Agreement for Registered Direct Placement of Approximately US$170.0 Million of its ADSs and Warra...
April 29 2021 - 9:24AM
Canaan Inc. (NASDAQ: CAN) ("Canaan" or the "Company"), a leading
high-performance computing solutions provider, today announced it
has entered into a securities purchase agreement with certain
institutional investors for a registered direct placement of
approximately $170.0 million of its American Depositary Shares
(“ADS”), each ADS representing 15 Class A ordinary shares of the
Company, par value US$0.00000005 per share (the “Class A Ordinary
Shares”), or US$12.60 per ADS. The Company has also agreed to issue
to the investors warrants (the “Warrants”) to purchase up to an
aggregate of 4,047,620 ADSs (representing 60,714,300 Class A
Ordinary Shares), at an exercise price of $16.38 per ADS, which
Warrants will have a term of three years from the date of issuance.
The offering is expected to close on or about May 3, 2021, subject
to customary closing conditions.
The net proceeds from this offering will be used
for research and development and expansion of production scale, and
working capital and general corporate purposes as disclosed in the
prospectus supplement to be filed in connection with the
offering.
FT Global Capital, Inc. acted as the sole
bookrunning placement agent and Valuable Capital Limited acted as
co-placement agent for the transaction. These securities are being
offered through a prospectus supplement pursuant to the Company's
effective shelf registration statement and the base prospectus
contained therein. A shelf registration statement (SEC Filing No.
333-255470) relating to these securities has been filed with the
Securities and Exchange Commission (the "SEC") on April 23, 2021
and became effective automatically pursuant to SEC Rule 462(e).
A prospectus supplement related to the offering
will be filed with the SEC. This press release does not constitute
an offer to sell or the solicitation of an offer to buy, and these
securities cannot be sold in any state in which this offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state. Any
offer will be made only by means of a prospectus, including a
prospectus supplement, forming a part of the effective registration
statement.
About Canaan Inc.Established in
2013, Canaan Inc. provides high-performance computing solutions to
efficiently solve complex problems. In 2016, Canaan successfully
initiated the production of its first 16nm chip and passed the test
to receive China's national high-tech enterprise certification. In
2018, Canaan achieved major technological breakthroughs to launch
the K210, the world's first-ever RISC-V-based edge artificial
intelligence (AI) chip, which is now widely used for access control
in situations such as smart door locks and more. Canaan Inc. is
currently focused on the research and development of advanced
technology, including such areas as AI chips, AI algorithms, AI
architectures, system on a chip (SoC) integration and chip
integration. Using the AI chip as its base, Canaan Inc. has
established an intellectual value chain. Canaan Inc. also provides
a suite of AI service solutions and is able to tailor these
solutions to the needs of its partners. For more information,
please visit: investor.canaan-creative.com.
Safe Harbor StatementThis
announcement 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, the
business outlook and quotations from management in this
announcement, as well as Canaan Inc.’s strategic and operational
plans, 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
equipment; 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 in China; 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, including its
registration statement on Form F−1, as amended, and its annual
reports on Form 20−F. 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
ContactCanaan Inc.Mr. Shaoke LiEmail:
IR@canaan-creative.com
ICR Inc.Jack WangTel: +1 (347) 396-3281Email:
canaan.ir@icrinc.com
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