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SEC places Chinese crypto mining rig maker Canaan on pre-delisting list
The Securities and
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Fast facts
- The SEC Wednesday said it is placing 88 Chinese companies, including Chinese mining machine maker Canaan Inc., on a pre-delisting list.
- Canaan Inc. has until May 25 to dispute the identification.
- Canaan’s stock price is down some 3.8% since May 4.
- Canaan on Thursday said it would “continue to comply with applicable laws and regulations in both China and the U.S., and strive to maintain its listing status on NASDAQ.”
- The PCAOB is seeking access to audit working papers of New York-listed Chinese companies stored in China.
- China has so far rejected such requests on national security grounds.
- Finalized in 2021, the Foreign Corporate Accountability Act (HFCAA) stipulates that a company put on such a list by the SEC for three consecutive years may face delisting.
- So far this year, 105 Chinese companies have been added to the possible delisting list, with 23 firms having been confirmed for delisting.
- Both countries are discussing an audit agreement to avoid the delisting, with Beijing hoping to sign a deal within the year, Reuters reported in April.
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