At situation, in line with the SEC, is Canaan’s use of an auditor for its 2021 annual report that the U.S. Public Firm Accounting Oversight Board (PCAOB) couldn’t absolutely examine or examine, mentioned the corporate in a submitting. Stated auditor was KPMG Huazhen LLP.
Finalized in 2021, the Holding Overseas Corporations Accountable Act (HFCAA) was aimed toward eradicating from U.S. public markets these corporations managed by overseas governments.
Canaan has till Could 25 to file documentation with the SEC to show that it’s not “owned or managed” by a overseas authorities, in line with the HFCAA. If Canaan had been to stay as an “recognized” issuer for 3 consecutive years, it dangers being delisted from U.S. markets, together with over-the-counter buying and selling.
“The Firm will proceed to adjust to relevant legal guidelines and laws in each China and the U.S., and attempt to keep up its itemizing standing on Nasdaq,” Canaan’s Thursday submitting mentioned.
The SEC and Canaan couldn’t be reached for remark on the time of publication.
Canaan is one in all over 70 corporations so-identified yesterday, with different names together with electrical car makers XPeng and Nio, e-commerce giants JD.com and Journey.com, and the maker of one in all China’s covid vaccines, Sinovac Biotech.
Alongside a greater than 3% plunge within the broader inventory market and bitcoin (BTC) on Thursday, China-linked crypto mining-related shares are additionally headed sharply decrease, with Canaan (CAN), Ebang (EBON), Bit Digital (BTBT), and Bit Mining (BTCM) all off 6%-10%.
Bitdeer and BitFuFu are two China-born mining corporations that need to go public through SPAC offers with Blue Safari Company (BSGA) and Arisz Acquisition Corp. (ARIZ), respectively.
In 2015, KPMG Huazhen and one other three Chinese language branches of world accounting companies settled a case introduced towards them by the SEC for failing to provide paperwork associated to fraud investigations. The companies paid $500,00 every and admitted that they did not produced the required paperwork.