The maker of Bitcoin mining hardware, Canaan, would soon be introducing a repurchase program to buy back the company’s shares at $10 million.
On September 08, while releasing a notification, the Bitcoin mining company stated that after getting approval from its board of directors, Canaan has decided to repurchase its American depositary shares (ADSs) for $10 million.
Canaan To Start Repurchasing From September 22
As per the announcement, made by the company they would start repurchasing 15 Class A ordinary shares or Class A ordinary shares from September 22. Further, it notified that this whole process will continue for 12 months.
The company’s executive has recently mentioned that at a regular interval of time, the major crypto mining company of China can buy back its ADSs via different types of transactions i.e., open market transactions, privately negotiated transactions or block trades.
The executive further mentioned that while buying back shares, any of the transactions processed should comply with Rule 10b5-1 or Rule 10b-18, which comes under the Securities Exchange Act of 1934.
Additionally, it has been declared that this whole process of buying back shares would depend on its price, trading volume, general market condition and the capital requirements of Canaan.
Canaan Sold Its Share For $9
According to the report, the mining hardware company wants to improve its financial statements, that is the reason it has decided to repurchase its share from the market.
The report further states that China-based Canaan is the very first mining company that has been listed on the United States Stock exchange Nasdaq.
In November 2019, Canaan conducted an initial public offering (IPO) on Nasdaq to sell 10,000,000 shares for $9 each. The company later raised a total of $90 million from that IPO.
Since the time Canaan shares were listed on Nasdaq, its value never increased however, it started going down. In March 2020, a group of investors registers a class-action suit against the maker of the Bitcoin mining hardware, due to which its value reaches an all-time low below $3.
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