Canaan Announces Closing of Registered Direct Offering of US$170.0 Million of its ADSs and Warrants
Canaan Inc., a leading high-performance computing solutions provider, announced for the closing of a registered direct offering of $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, or US$12.60 per ADS. The Company has also issued to the investors 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 have a term of three years from the date of issuance.
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. Simpson Thacher & Bartlett acted as the Company’s U.S. legal counsel and Schiff Hardin LLP acted as the legal counsel for FT Global Capital.
These securities were 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).
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A prospectus supplement related to the offering has been filed with the SEC on April 30, 2021. 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.
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