Canaan Creative, a China-based Bitcoin mining hardware manufacturer, has faced a major obstacle on its IPO path, which it progressed step by step.
Did Canaan Fool The SEC?
Canaan made an initial IPO application to the US financial regulator SEC in October 2018 and announced that its targeted capital was $ 400 million. Despite this, Canaan was able to collect only $ 90 million and entered Nasdaq in this way.
It is known that the biggest impact that reduced the share of Canaan is rival crypto money companies. Other mining hardware manufacturers, such as Bitmain and MicroBT, caused a serious drop in Canaan’s share. Despite this, the final blow to the mining giant seems to be worse than all of them.
A Canadian investor named Philippe Lemieux argues that Canaan violated the 1933 Securities Act, stating that it misleaded investors and the SEC. In an application he made with Lemieux’s lawyer, he filed a mass action against Canaan. The investor’s biggest claim is that Canaan is on the verge of financial collapse and does not have the criteria to make IPO.
It is not yet clear what the SEC will answer.