in , ,

Mining Hardware Maker Canaan Looks to Issue $12.4M in Stock to Employees

mining-hardware-maker-canaan-looks-to-issue-$12.4m-in-stock-to-employees

Cryptocurrency mining ASIC producer Canaan filed with the U.S. SEC to issue around $12.4 million worth of shares to its employees.

Cryptocurrency mining application specific integrated circuit (ASIC) producer Canaan filed with the U.S. Securities and Exchange Commission (SEC) to issue around $12.4 million worth of shares to its employees.

According to the S-8 form, filed with the SEC on May 27, Canaan is looking to issue nearly $12.4 million of class A ordinary shares with a maximum offering price of $0.24 per share.

As Cointelegraph reported in late November 2019, Canaan raised $90 million by selling 10,000,000 shares for $9 each in its initial public offering (IPO). According to Google Finance data, as of press time the firm’s stock had lost 76% of its value since the IPO and is now worth $2.16.

Canaan faces controversy over alleged dubious practices

According to early March reports, Canaan misrepresented its potential revenue for 2020 to attract investors to its IPO. Shortly thereafter, investor rights-focused law firm Rosen Law Firm launched a class-action lawsuit against the company. The firm is accused of making false and misleading statements that resulted in the investors suffering damages.

As a Cointelegraph analysis on the matter explained, one month before the IPO the company announced a “strategic partnership” with Hong Kong exchange-listed company Grandshores. The firm was supposed to purchase up to $150 million worth of Canaan mining equipment.

Grandshores ASIC order would represent almost all of Canaan’s trailing revenue of $177 million. Analysts also claim that the client had no way to actually follow-through with  the deal, as the company has only a $50 million market cap and $16 million of cash.

Written by btcethereumadmin

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Loading…

0
ledger-cto-explains-why-smartphones-won’t-ever-be-fully-safe-for-using-crypto

Ledger CTO Explains Why Smartphones Won’t Ever Be Fully Safe for Using Crypto

satoshi-nakamoto-had-outside-cryptography-help,-says-early-bitcoin-dev

Satoshi Nakamoto Had Outside Cryptography Help, Says Early Bitcoin Dev