SEC brought Canaan to a preliminary list for divisting

The US Securities and Exchange Commission (SEC) included the manufacturer of Canaan miners in the preliminary list of Chinese companies to be excluded from the listing of American exchanges.

According to the regulator, 88 in foreign jurisdiction, firms used the services of auditors whose documents could not check PCAOB . This violates the provisions of the Law on the responsibility of foreign companies from 2020.

The commission noted that the ban on the disclosure of the results of the audit is the “position of the authorities” China.

SEC identified foreign issuers can challenge the regulator solution until May 25.

“The company is actively studying possible solutions to protect the interests of interested parties. We continue to comply with the current laws and rules in China and in the USA, and strive to maintain the status of listing on NASDAQ, ”Canaan said.

According to Reuters, in April, Beijing proposed changes to the rules of confidentiality in relation to firms traded on foreign exchanges to allow auditing dispute with the United States. If this fails, https://gagarin.news/news/court-rejects-the-arrest-warrant-for-do-kwons-assistant/ until 2024, American exchanges can exclude about 240 Chinese companies from listing.

In November 2019, Canaan was the first of mining equipment manufacturers to go to the stock exchange. During the IPO on NASDAQ, the company attracted $ 90 million, placing 10 million depository receipts at a price of $ 9.

At the time of writing, the market estimates the cost of Canaan shares at $ 3.5. In July 2021, paper quotes were recorded at a maximum of marks above $ 34.5, while in June 2020 they fell below $ 2.

Recall that in June 2020, another Chinese miner manufacturer, Ebang International Holdings, entered the NASDAQ.