At subject, in response to 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 totally examine or examine, stated the corporate in a submitting. Mentioned auditor was KPMG Huazhen LLP.
Finalized in 2021, the Holding International Corporations Accountable Act (HFCAA) was aimed toward eradicating from U.S. public markets these firms managed by international governments.
Canaan has till Might 25 to file documentation with the SEC to show that it isn’t “owned or managed” by a international authorities, in response to 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 try to keep up its itemizing standing on Nasdaq,” Canaan’s Thursday submitting stated.
The SEC and Canaan couldn’t be reached for remark on the time of publication.
Canaan is one in all over 70 firms so-identified yesterday, with different names together with electrical automobile 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 firms that want 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 in opposition to them by the SEC for failing to supply paperwork associated to fraud investigations. The companies paid $500,00 every and admitted that they did not produced the required paperwork.