Cango Inc. Implements 10:1 Share Consolidation Amid Regulatory Pressures

Cango Inc. has announced a new share consolidation ratio of 10:1, set to take effect on July 20, 2026. This decision comes as part of the company’s strategy to navigate ongoing regulatory challenges, following a shareholder meeting held on June 24, 2026.

As per the announcement, the consolidation will affect both Class A and Class B ordinary shares. The plan is to merge every ten shares into one, a move aimed at counteracting the recent delisting warning the company received from the New York Stock Exchange (NYSE). This warning arose when Cango’s Class A stock, CANG, consistently closed below the minimum price threshold of $1.00 over a 30-day period.

Details of the Share Consolidation

Before the consolidation announcement, CANG shares were trading around $0.23, leading to concerns regarding compliance with NYSE listing requirements. By consolidating shares, Cango aims to elevate its stock price artificially to ensure compliance. Upon completion of the consolidation process, CANG shares are expected to resume trading on a post-consolidation basis starting July 21, 2026, under the existing ticker symbol and a newly assigned CUSIP number, G1820C 110.

The company's authorized share capital will remain at $100,000, divided into a total of 100 million ordinary shares. This total includes 92,067,428 Class A shares and 7,932,572 Class B shares, each with a par value of $0.001.

Impact on Shareholders

Cango has clarified that fractional shares will not be issued as part of this consolidation. Instead, any shareholder entitled to a fractional share upon consolidation will have their total rounded down to the nearest whole number. Consequently, any fractional shares resulting from this process will be canceled and returned to the pool of unissued shares without any payment to the respective holders.

This structural adjustment demonstrates Cango's proactive approach in light of regulatory scrutiny and market pressures. As the Bitcoin mining sector continues to face challenges, companies like Cango are forced to make strategic changes to maintain compliance and investor confidence.

This material is for informational purposes only and should not be considered as financial advice.