Cango (CANG) is vulnerable to shedding its NYSE itemizing after its shares traded under $1 on common for 30 consecutive days, triggering a compliance discover from the alternate and giving the bitcoin miner a six-month window to get better, the corporate mentioned in a press launch Wednesday.
The New York Inventory Alternate flagged the corporate on March 10, warning that failure to raise its share worth again above the $1 threshold by the top of the remedy interval may result in suspension and delisting proceedings. Cango mentioned it plans to watch market situations and discover choices to regain compliance, whereas its shares proceed buying and selling within the interim.
In opposition to that backdrop, the corporate is shoring up its steadiness sheet with recent capital.
In a separate announcement, Cango mentioned it has entered right into a $10 million convertible be aware settlement with Hong Kong-listed DL Holdings, alongside issuing warrants to buy shares at $2.70 apiece. The financing is paired with a non-binding cooperation framework that would see the 2 companies pursue extra joint investments tied to crypto mining and AI infrastructure.
Proceeds from the be aware are earmarked for upstream acquisitions and increasing Cango’s push into computing infrastructure, a part of a broader pivot past bitcoin mining.
Cango’s latest fundraising comes as the corporate pivots past its roots in bitcoin mining towards a broader technique centered on vitality and AI compute infrastructure. The agency has been positioning its international mining footprint as a basis for high-performance computing, aiming to repurpose or increase its energy capability to assist>Cango is promoting off its bitcoin stash to pay down debt and fund an AI makeover
