Canaan Approves $100 Million Buyback and Changes Ratio to One ADR for Every 375 Shares
Key Facts
On November 10, 2026, Canaan announced an initial share repurchase program of up to $20 million, under a board authorization of up to $100 million over 12 months, alongside a change in the ratio of American depositary shares to ordinary shares. The company said the ratio adjustment is intended to help it regain compliance with Nasdaq’s minimum bid price requirement, with the compliance deadline set for January 11, 2027. The authorization allows for additional purchases within the approved limit, but does not mean the company will execute the full authorized amount. The board approved the authorization on November 6, 2026, and its term begins on that date. The announcement combines a potential share repurchase with an action involving depositary shares linked to listing requirements.
The plan changes the ratio from one depositary share representing 15 Class A ordinary shares to one representing 375 shares, which the company described as a 1-for-25 reverse split of the depositary shares. The change is expected to take effect on or around December 4, 2026, U.S. Eastern Time. Canaan said the change applies to the depositary shares and that no ordinary shares will be issued or canceled as a result. It added that the action will not affect the company’s operations or financial position. The number of ordinary shares represented by each depositary share will therefore change, while the company says the number of ordinary shares itself will not change as a result of the move.
The company expects the depositary share trading price to increase proportionally to the ratio adjustment when it takes effect, but it does not guarantee that the price will reach or exceed 25 times its previous level. This means the announced conversion ratio does not provide a corresponding guarantee about the trading price after the change. No new fractional depositary shares will be issued as part of the process. According to the company, the depositary bank will aggregate fractional entitlements and sell them, then distribute the net proceeds to their holders after fees, taxes and expenses. This procedure sets out how holdings that do not amount to a whole depositary share will be handled after the new ratio is applied.
Canaan shares closed at $0.2021 on November 9, 2026, according to EL7 data, in the session before the company’s announcement. The ratio change comes as the company seeks to address Nasdaq’s minimum bid price requirement, following the transfer of its listing to the Nasdaq Capital Market. In a prior filing in July 2026, the company said Nasdaq had granted it an initial compliance period that ended on July 13, and that it had requested an additional 180-day period after the listing transfer. The expected December timing would put the change before the January 2027 compliance deadline. The company says the purpose of the ratio change is to help it regain compliance with the minimum required bid price.
The board authorized repurchases from time to time in the open market, through privately negotiated transactions or by other means permitted by law. The company said execution will be subject to market conditions, regulatory requirements and capital allocation priorities. The authorization provides flexibility to consider additional purchases within its $100 million limit, while the initial program is capped at $20 million. The announcement did not specify how many shares the company might buy or when purchases would take place. The authorization therefore provides a framework for purchases, while actual transactions depend on the conditions cited by the company.
The announcement coincided with third-quarter results showing revenue of $14.5 million, compared with $31.9 million in the second quarter of 2026 and $150.5 million in the same period of 2025. The company attributed lower product sales to weak demand and declines in computing power sold and average selling price. In contrast, it recorded net income of $8.0 million, after a net loss of $97.6 million in the previous quarter and a loss of $27.7 million in the third quarter of 2025. The comparison shows revenue declining both sequentially and year over year, alongside a shift in the third-quarter net result from a loss to income. This financial context provides background for the buyback announcement, without changing the stated authorization limit or establishing that the program will be executed.
For the fourth quarter of 2026, Canaan forecast revenue of between $18 million and $22 million. It said the outlook reflects near-term market conditions and changing customer dynamics, and may change. The range follows third-quarter revenue of $14.5 million, while potential purchases under the authorization remain subject to market conditions, regulation and capital allocation priorities. The depositary share ratio change is expected to take effect on or around December 4, 2026. The deadline for restoring compliance with Nasdaq’s minimum bid price requirement is January 11, 2027.