From September 22, the Nasdaq-listed Chinese miner Canaan will begin a share repurchase program. The company will allocate $10 million to the program, the release says.
The proposal was approved by Canaan’s board of directors.
The company filed the corresponding Form 6-K with the U.S. Securities and Exchange Commission.
During the year, the miner will be able to repurchase American depositary receipts (ADS). The program can be executed through open-market trades conducted on an individual basis, block trades, or a combination of methods.
“The number of ADS and the timing of the buyback depend on factors, including price, trading volume, market conditions, Canaan’s working capital requirements and overall business conditions,” the statement noted.
The board of directors may adjust the terms of the program. The buyback is funded from the company’s own funds.
In November 2019, Canaan placed 10 million ADS at $9 apiece. In a month, the company’s stock fell 40% — by December 13 its price had dropped to $5.71.
In mid-June, the Chinese manufacturer’s share prices fell below $2. At the time of writing, the shares were trading near that level.
Earlier, in the second quarter of 2020 the company narrowed its net loss to $2.38 million.
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