Cango Inc. Announces New Equity Investment from EWCL

Rhea-AI Summary

Cango (NYSE: CANG) announced that Enduring Wealth Capital Limited (EWCL), the holder of Class B shares with ~36.68% voting power, agreed to subscribe for 7,000,000 Class B ordinary shares at $1.50 per share for an aggregate $10.5 million purchase under an Investment Agreement dated December 29, 2025.

Upon closing (expected January 2026, subject to NYSE approval and customary conditions), EWCL's equity stake is expected to rise from ~2.81% to ~4.69% of outstanding shares and its voting power from ~36.68% to ~49.61%.

There is no assurance the closing conditions will be satisfied or the Proposed Investment will complete.

Positive

• Cash injection of $10.5M into the company
• Issuance of 7,000,000 Class B shares at $1.50
• EWCL voting power rising to 49.61%

Negative

• Concentration of control: EWCL voting power near 50%
• Transaction requires NYSE approval and may not close
• Existing shareholders diluted: equity stake shift to 4.69% for EWCL

Argus Dec 29 session

-2.16% close to close Open Argus

Details

News Market Reaction – CANG

On Dec 29, the day this news came out, CANG closed 2.16% below the previous close.

Data tracked by StockTitan Argus for the Dec 29 session.

Key Figures

New Class B shares: 7,000,000 shares Aggregate purchase price: US$10,500,000 Subscription price: US$1.5 per share +5 more

New Class B shares

7,000,000 shares

Subscribed by EWCL under Investment Agreement dated December 29, 2025

Aggregate purchase price

US$10,500,000

Cash subscription by EWCL for new Class B ordinary shares

Subscription price

US$1.5 per share

Implied per-share price for 7,000,000 new Class B ordinary shares

EWCL ownership before

2.81% of shares

Pre-transaction shareholding of total outstanding shares

EWCL ownership after

4.69% of shares

Expected post-closing shareholding of total outstanding shares

Voting power before

36.68% of votes

EWCL voting power as sole Class B shareholder pre-investment

Voting power after

49.61% of votes

Expected EWCL voting power post-closing of Proposed Investment

Votes per Class B share

20 votes per share

Voting structure of the Company’s Class B ordinary shares

Historical Context

5 past events · Latest: Dec 24

5 events

1. Dec 24

   Analyst rating

   24h Move

   +2.2%

   Initiation with buy rating and US$4.00 target citing AI and mining strength.

2. Dec 05

   Operations update

   24h Move

   -6.2%

   Monthly Bitcoin production and strategy update with long-term BTC holding.

3. Dec 02

   Earnings release

   24h Move

   -9.7%

   Strong Q3 revenue growth and mining metrics with detailed profitability data.

4. Dec 01

   Earnings release

   24h Move

   -3.3%

   Q3 2025 financial results highlighting revenue, EBITDA and BTC cost metrics.

5. Nov 25

   Earnings date notice

   24h Move

   +0.0%

   Scheduling announcement for upcoming Q3 2025 financial results and call.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

class b ordinary shares, voting power, closing conditions

3 terms

class b ordinary shares financial

"will issue and deliver to EWCL 7,000,000 Class B ordinary shares, each carrying 20"

Class B ordinary shares are a type of ownership stake in a company that typically come with different voting rights or privileges compared to other share classes. For investors, they represent a way to hold part of the company’s value and influence its decisions, often with fewer voting rights than Class A shares. Understanding these shares helps investors assess their level of control and potential returns within a company.

voting power financial

"with approximately 36.68% of the total voting power of the Company's outstanding"

Voting power is the ability shareholders have to influence a company's major decisions—like electing the board, approving mergers, or changing corporate rules—based on the voting rights attached to the shares they hold. For investors it matters because greater voting power is like holding more keys to a building: it gives you a stronger say over management choices and the company’s strategy, which can affect future value and risk.

closing conditions financial

"Closing of the Proposed Investment is subject to certain customary closing conditions"

Closing conditions are specific requirements or steps that must be met before a financial deal or transaction can be finalized. They act like a checklist that ensures all necessary details are confirmed and agreed upon, giving both parties confidence that the deal is ready to be completed. Meeting these conditions is essential for the transaction to move forward smoothly and successfully.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DALLAS, Texas, Dec. 29, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company") a leading Bitcoin miner leveraging its global operations to develop an integrated energy and AI compute platform, today announced that Enduring Wealth Capital Limited ("EWCL"), the sole shareholder of the Company's Class B ordinary shares with approximately 36.68% of the total voting power of the Company's outstanding shares, decided to increase its investment in the Company by subscribing for additional Class B ordinary shares of the Company in cash.

Pursuant to an Investment Agreement dated December 29, 2025, between the Company and EWCL, the Company will issue and deliver to EWCL 7,000,000 Class B ordinary shares, each carrying 20 votes per share. EWCL will subscribe for and purchase these shares for an aggregate purchase price of US$10,500,000, implying a per-share price of US$1.5 (the "Proposed Investment").

Upon closing of the Proposed Investment, EWCL's shareholding in the Company is expected to increase from approximately 2.81% to approximately 4.69% of the total outstanding shares. Correspondingly, EWCL's voting power is expected to rise from approximately 36.68% to approximately 49.61% of the total voting power of the Company's outstanding shares.

Closing of the Proposed Investment is subject to certain customary closing conditions, including the requisite approval by the New York Stock Exchange. The Company expects to close the transaction in January 2026. There can be no assurance that all the closing conditions will be satisfied or that the Proposed Investment will be completed.

About Cango Inc.

Cango Inc. (NYSE: CANG) is a Bitcoin mining company with a vision to establish an integrated, global infrastructure platform capable of powering the future digital economy. The Company's mining operations span over 40 sites across North America, the Middle East, South America, and East Africa.

Since entering the digital asset space in November 2024, Cango has activated pilot projects in both integrated energy solutions and distributed AI computing. In parallel, Cango continues to operate an online international used car export business through AutoCango.com.

For more information, please visit: www.cangoonline.com. 

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the "Roadmap Forward" section and quotations from management in this announcement, contain forward-looking statements. Cango may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Cango's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Cango's goal and strategies; Cango's expansion plans; Cango's future business development, financial condition and results of operations; Cango's expectations regarding demand for, and market acceptance of, its solutions and services; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact

Juliet Ye, Head of Communications
Cango Inc.
Email: ir@cangoonline.com

Christensen Advisory
Tel: +852 2117 0861
Email: ir@cangoonline.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/cango-inc-announces-new-equity-investment-from-ewcl-302650055.html

SOURCE Cango Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the size and price of EWCL's investment in CANG announced Dec 29, 2025?

EWCL agreed to buy 7,000,000 Class B shares for $10.5M at $1.50 per share.

How will EWCL's voting power change after the CANG investment closes?

EWCL's voting power is expected to increase from ~36.68% to ~49.61%.

When does Cango expect the EWCL subscription to close and what approvals are needed?

The company expects to close in January 2026, subject to customary conditions including NYSE approval.

How will the EWCL purchase affect EWCL's equity percentage of CANG?

EWCL's equity stake is expected to rise from ~2.81% to ~4.69% of outstanding shares.

Does the Dec 29, 2025 investment guarantee completion for Cango (CANG)?

No; the company cautioned there is no assurance all closing conditions will be satisfied.

Will the EWCL transaction dilute current CANG shareholders?

Yes; the issuance of 7,000,000 Class B shares will change share percentages and dilute existing holdings.