Canaan, China’s major cryptocurrency mining organization plans launching 10 million USD worth shares repurchase program.
On Sept. 8, the Nasdaq-listed company has officially informed that the Board of directors that its board of directors has authorized a share repurchase program having up to $10 million worth of its American depositary shares, or ADSs.
Based on the official representatives information, Canaan will start repurchasing 15 Class A ordinary shares and/or Class A ordinary shares during next year beginning from the end of September
In accordance with the share repurchase program, the mining giant gets the right to repurchase its ADSs “from time to time” by means of open market transactions at preliminary market prices, privately negotiated transactions, block trades or “any combination thereof,” the company’s CEO mentioned.
In the announcement, Canaan’s representatives said that repurchase transactions will be done based on the requirements of Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934. The number of repurchased ADSs and the schedule of repurchases will be regulated by the following factors like price, trading volume, general market conditions, and Canaan’s working capital requirements and general business conditions.
Also known as a share buyback, a share repurchase supposes the repurchase of the own shares from the market by the company. It is usually done in hope to grow the value of the stock to improve financial indexes.