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Canaan Inc. Launches $270M ATM Equity Offering - Key Insights from Form 6-K Report

$CAN
Form 6-K
Filed on: 2024-12-23
Source
Canaan Inc. Launches $270M ATM Equity Offering - Key Insights from Form 6-K Report

Key Information from Canaan Inc.'s Form 6-K Report:

  1. Company Information:
  • Name: Canaan Inc.
  • Address: 28 Ayer Rajah Crescent, #06-08, Singapore 139959.
  • Commission File Number: 001-39127.
  1. Reporting Date: December 23, 2024.
  2. New Sales Agreement:
  • Canaan Inc. entered into a sales agreement (the "ATM Agreement") with multiple sales agents, including Macquarie Capital Limited and Keefe, Bruyette & Woods, Inc.
  • This agreement allows the company to establish a new at-the-market (ATM) equity offering program.
  1. ATM Program Details:
  • Canaan may sell up to $270 million of American depositary shares (ADSs), each representing fifteen Class A ordinary shares.
  • The offering is made under the existing shelf registration statement on Form F-3, which became effective on September 5, 2024.
  1. Purpose of Proceeds:
  • The proceeds from the ATM Program are intended for:
    • Research and development.
    • Expansion of production scale.
    • Manufacturing or investing in digital mining sites and equipment.
    • Other general corporate purposes.
  1. Previous ATM Program:
  • The company terminated its previous ATM agreement with B. Riley on December 20, 2024.
  • From November 10, 2023, to December 31, 2023, Canaan sold 31,347,044 ADSs, raising approximately $61.2 million at an average price of $1.99 per ADS.
  1. Legal Opinion:
  • An opinion regarding the validity of the securities to be issued under the ATM Agreement is provided by Maples and Calder (Hong Kong) LLP.
  1. Forward-Looking Statements:
  • The report includes forward-looking statements regarding the company's financing plans and intended use of proceeds, which involve inherent risks and uncertainties.
  1. Miscellaneous:
  • This Form 6-K is for informational purposes only and does not constitute an offer to sell or a solicitation to buy any securities.

This summary captures the essence of Canaan Inc.'s recent activities related to its ATM offering, including details on the agents involved, the financial scope of the offering, and intended use of the funds raised.