Canaan Technology plans to distribute $12.4 million in stock as employee benefits

According to BlockBeats, Canaan Inc. (CAN), the manufacturer of the Avalon mining machine and a Nasdaq-listed company, plans to issue shares worth $12.4 million as employee benefits.

The company filed a Form S-8 with the U.S. Securities and Exchange Commission (SEC) on Wednesday, saying it will issue 51.624 million Class A common shares at a maximum price of $0.24 per share. According to SEC requirements, public companies that want to issue stocks or stock options to their employees must file Form S-8. It must be filed before a company issues securities.

Canaan will issue two types of Class A common stock, with the majority ($10.9 million) to be given to employees under its 2018 equity incentive plan, and another $1.4 million reserved under the same plan for future incentive grants.

Just days ago, Canaan Inc. reported a net loss of $5.6 million in the first quarter of 2020. Canaan Inc.'s stock price has been under pressure in recent months and is currently down more than 10% in the pre-market trading session, according to TradingView data. The stock is currently trading at around $3.

Original link: https://www.theblockcrypto.com/linked/66688/