Cango Inc. Announces Extension of Deadline to Close Share-Settled Crypto Mining Assets Acquisitions
SHANGHAI, March 26, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company") today announced an extension of the deadline to close its proposed acquisitions of on-rack crypto mining machines with an aggregate hashrate of 18 Exahash per second ("EH") through issuance of Class A ordinary shares of the Company to the sellers (the "Share-Settled Transactions"). The Company announced signing of the On-Rack Sales and Purchase Agreement (the "Purchase Agreement") for the Share-Settled Transactions on November 6, 2024, which contemplated closing of the Share-Settled Transactions by March 31, 2025 (the "Long Stop Date"). The Company announced on March 14, 2025 that it received a preliminary non-binding letter of intent (the "Letter of Intent") from Enduring Wealth Capital Limited ("EWCL"), which proposed acquisition of control of the Company by EWCL and disposal of the Company's existing business in the PRC to a buyer introduced by EWCL. As the transactions proposed in the Letter of Intent may affect certain provisions in the Purchase Agreement, the Company reached an amendment agreement with the sellers for the Share-Settled Transactions on March 25, 2025 for the sole purpose of extending the Long Stop Date to July 31, 2025 so that the Company and the sellers have sufficient time to assess the necessity of any further revisions to the Purchase Agreement if the Company decides to pursue any of the transactions proposed in the Letter of Intent.
As previously announced by the Company, the Company completed the acquisition of on-rack crypto mining machines with an aggregate hashrate of 32EH for a total purchase price of US$256 million in cash, or the Cash-Settled Transaction, on November 15, 2024. The closing of the Share-Settled Transactions is subject to certain closing conditions that are yet to be satisfied or waived and the Company is working with the relevant parties towards the closing of the Share-Settled Transactions. There can be no assurance that the closing conditions will be satisfied nor that the Share-Settled Transactions will be completed before the extended Long Stop Date or at all.
