CAN - Why Canaan Stock Was Crushed Today
Shares of Canaan (NASDAQ: CAN) were crushed on Thursday after the company announced a substantial direct stock offering. As of 12:30 p.m. EDT, the stock was down 12%.
In all, Canaan is offering around 17.5 million American depositary shares (ADS) to raise around $170 million. As a reminder, Canaan is an international stock and the ADS are what trade here in the U.S. -- each ADS is equivalent to 15 Class A shares that trade on a foreign exchange. The company is selling over 13 million ADS for $12.60 each to institutional investors. It's also selling over 4 million warrants that can be converted into ADS at an exercise price of $16.38.
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Why Canaan Stock Was Crushed Today