Canaan Inc. (CAN) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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Canaan Inc. faces a potential financial risk that may concern current investors, as the company retains the option to issue additional equity securities to support future acquisitions, development of new projects, or other corporate needs. While there is no immediate plan to increase equity capital, any future issuance could dilute existing shareholders’ stakes, potentially leading to a devaluation of their investments. This scenario also poses the risk of negatively affecting the trading price of Canaan Inc.’s American Depositary Shares (ADSs) due to market perceptions of the dilutive effect of such issuances.
The average CAN stock price target is $2.75, implying 198.88% upside potential.
To learn more about Canaan Inc.’s risk factors, click here.
