Mining equipment manufacturer Canaan has been placed on the preliminary SEC delisting list. Canaan faces a ban on trading in the company’s shares on the US stock market.
US Securities and Exchange Commission (SEC) contributed Chinese mining equipment manufacturer Canaan to the preliminary delisting list. The company has until May 25 to challenge the SEC decision.
If Canaan fails to challenge the Commission’s decision within the statutory time limits, the regulator will issue an order prohibiting trading in the company’s shares or American depositary shares on the national stock exchange and on the over-the-counter trading market in the United States.
Canaan reported, which is actively exploring possible solutions to protect the interests of its stakeholders and will continue to comply with applicable laws and regulations in both China and the United States. The company is also looking to maintain its NASDAQ listing status. Canaan’s share price has fallen about 3.8% since May 4th.
In 2020, the Foreign Company Liability Act (HFCAA) came into force in the United States. Under the HFCAA, the Public Company Accounting Oversight Commission (PCAOB) has been mandated to oversee the audited financial statements of public companies if the company has a branch or office in a foreign jurisdiction.
If the PCAOB is unable to conduct a full review or investigation of a public company’s financial statements, then the Commission will place the issuers it identifies under the HFCAA on the delisting list. This year, 105 Chinese companies have been added to the list, with 23 firms confirmed for delisting.
Recall that in mid-April, Canaan introduced a new ASIC miner model in the A12 line. The Avalon A1266 delivers a hash rate of 100 TH/s with a power consumption of 3500 watts.
Source: Bits
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