Schiff Hardin LLP advised the placement agent on the deal.
Canaan Inc. (NASDAQ: CAN) (“Canaan” or the “Company”), a leading high-performance computing solutions provider, 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.
The Schiff Hardin team included Ralph V. De Martino (Picture), Cavas S. Pavri and Heather H. Sanborn.
Law Firms: Schiff Hardin LLP;
Clients: FT Global Capital, Inc.;