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Chinese mining giant Canaan announces $10 million share buyback

Chinese mining giant Canaan announces $10 million share buyback

Canaan, China’s main cryptocurrency mining firm, will quickly launch a $10 million share repurchase program.

On Sept. 8, the Nasdaq-listed firm formally introduced that its board of administrators has  approved a share repurchase program to repurchase as much as $10 million value of its American depositary shares, or ADSs.

In line with the announcement, Canaan will probably be repurchasing 15 Class A bizarre shares and/or Class A bizarre shares over the following 12 months beginning Sept. 22.

Beneath the share repurchase program, the mining big is allowed to repurchase its ADSs “on occasion” by way of open market transactions at prevailing market costs, privately negotiated transactions, block trades or “any mixture thereof,” the agency’s executives stated.

Within the announcement, Canaan’s representatives stated that repurchase transactions will probably be performed in compliance with Rule 10b5-1 and/or Rule 10b-18 below the Securities Trade Act of 1934. The variety of repurchased ADSs and the schedule of repurchases will rely upon a number of elements like worth, buying and selling quantity, basic market situations, in addition to Canaan’s working capital necessities and basic enterprise situations, the corporate’s reps famous.

Often known as a share buyback, a share repurchase is a call by an organization to purchase again its personal shares from the market. Firms often repurchase shares to extend the worth of the inventory to enhance their monetary statements.

Headquartered in China, Canaan is the primary ever cryptocurrency mining agency that was listed on a United States alternate. In November 2019, Canaan performed an preliminary public providing on main inventory alternate Nasdaq, elevating $90 million by 10,000,000 shares for $9 every, which was reportedly over 75% lower than anticipated initially.

Canaan’s inventory suffered a significant drop since itemizing on Nasdaq, with shares by no means going increased than $9. In March 2020, CAN inventory collapsed to under $three after buyers filed a category motion go well with towards the agency. The lawsuit stipulated that Canaan made deceptive statements concerning its monetary well being.

After recovering as much as $6 in Could 2020, Canaan inventory has seen quite a few consecutive sell-offs, main the inventory’s worth to as little as $1.9 on Sept. 4, in accordance with knowledge from Nasdaq.

CAN all-time worth chart. Supply: Nasdaq

Cointelegraph reached out to Canaan with further queries concerning the share repurchase program. This text will probably be up to date pending any new data from the corporate.

Canaan’s share repurchase plans come amid purported enhancements within the firm’s enterprise. In late August, Canaan launched its unaudited monetary Q2 2020 outcomes, reporting development in gross revenue each 12 months on 12 months and quarter on quarter. The corporate additionally considerably diminished its internet loss from 263 million Chinese language renminbi ($38 million) in Q2 2019 to 16.Eight million renminbi ($2.Four million) in Q2 2020.

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