Ebang Seeks $125 Million US IPO Regardless of Losses for Months

Chinese language Bitcoin miner maker Ebang has revised its prospectus with the Securities and Trade Fee (SEC), revealing extra particulars of its preliminary public providing (IPO) try.

Based on Wednesday’s submitting, the Hangzhou-based firm is anticipating to supply 19.32 million shares at a value vary of $4.50 to $6.50 – the exhausting cap has been elevated to round $125 million from the earlier proposal of $100 million.

As talked about earlier, Ebang is approaching Nasdaq to record its shares underneath the image “EBON”.

The corporate has additionally on-boarded Prime Quantity Capital as a further underwriter together with present Hong Kong-based AMTD World Markets Restricted and U.S.-based Loop Capital Markets.

The current submitting got here following Ebang’s unique strategy to the SEC for an IPO in April. The Bitcoin mining {hardware} producer additionally tried to record its shares in Hong Kong, elevating $1 billion, however failed miserably.

Approaching the market with very poor numbers

Ebang additionally disclosed its monetary situations within the current submitting, displaying losses and detrimental money flows for months. The corporate had web losses of $11.eight million and $41.1 million in 2018 and 2019, respectively, and won’t flip worthwhile within the close to future. Even within the first quarter of 2020, the corporate booked $2.5 million in losses, regardless of the push for brand new ASICs following halving.

The corporate highlighted that the value risky and sharp lower of Bitcoin is accountable for its purple figures. For the final quarter’s numbers, it blamed the “vital lower in sure non-recurring native authorities’s tax rebates.”

The income of the corporate in Q1 2020 touched $6.Four million, a slight enhance from the identical figures for a similar quarter within the earlier 12 months. This was resulting from a rise within the common promoting value and gross sales volumes of its Ebit mining machines.

Canaan grew to become the primary Bitcoin mining {hardware} producer to record its shares in a US alternate, however the firm is performing very poorly as a result of declining investor curiosity in such firms.

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