Cango Inc. Closed the Previously Announced US$10.5 Million Equity Investment from EWCL and Secured US$65 Million Additional Equity Investments

Cango (NYSE: CANG) closed a US$10.5 million equity investment from Enduring Wealth Capital and entered definitive agreements for an additional US$65 million of equity investments from entities owned by Chairman Xin Jin and director Chang-Wei Chiu.

Rhea-AI Summary

Cango (NYSE: CANG) closed a US$10.5 million equity investment from Enduring Wealth Capital and entered definitive agreements for an additional US$65 million of equity investments from entities owned by Chairman Xin Jin and director Chang-Wei Chiu. The company issued 7.0 million Class B shares at US$1.50 and agreed to issue 49,242,424 Class A shares at US$1.32 per share in aggregate. Post-close, EWCL's ownership rose to ~4.71% of shares and ~49.71% of voting power. Proceeds are earmarked to expand AI and computing infrastructure and to strengthen the balance sheet. Closings of the Proposed Class A Investments are expected in February 2026 and remain subject to customary conditions including NYSE approvals, with no assurance of completion.

Positive

• Closed US$10.5M Class B investment from EWCL
• Secured US$65M in definitive equity agreements
• Proceeds designated for AI and computing infrastructure expansion

Negative

• EWCL voting power increased to approximately 49.71%
• Issuance of ~49.24M Class A shares may dilute existing holders
• Proposed Class A closings subject to NYSE approval and not guaranteed

Argus Feb 12 session

-9.35% close to close Open Argus

Details

News Market Reaction – CANG

On Feb 12, the day this news came out, CANG closed 9.35% below the previous close.

Data tracked by StockTitan Argus for the Feb 12 session.

Key Figures

EWCL equity investment: US$10.5 million Additional equity commitments: US$65 million Class B shares issued: 7,000,000 shares +5 more

EWCL equity investment

US$10.5 million

Closed Class B investment from EWCL

Additional equity commitments

US$65 million

Aggregate Proposed Class A Investments from entities of Mr. Jin and Mr. Chiu

Class B shares issued

7,000,000 shares

Class B ordinary shares to EWCL at US$1.50

Class B share price

US$1.50 per share

Issue price for Class B Investment to EWCL

Mr. Chiu Class A investment

29,975,137 shares / US$39,567,181

Class A ordinary shares subscribed by Fortune Peak Limited

Mr. Jin Class A investment

19,267,287 shares / US$25,432,819

Class A ordinary shares subscribed by Armada Network Limited

Implied Class A price

US$1.32 per share

Price for Proposed Class A Investments based on four-week closing prices

EWCL voting power post-deal

49.71% of voting power

After closing of the Class B Investment

Historical Context

5 past events · Latest: Feb 09

5 events

1. Feb 09

   Shareholder letter pivot

   24h Move

   -5.5%

   Outlined shift from Bitcoin mining toward distributed AI inference compute platform.

2. Feb 09

   Bitcoin sale & deleveraging

   24h Move

   -5.5%

   Sold 4,451 BTC for ~US$305M to repay collateralized loan and fund AI pivot.

3. Feb 03

   January mining update

   24h Move

   +0.0%

   Reported lower BTC production and operating hashrate with stable deployed capacity.

4. Jan 05

   December mining update

   24h Move

   +16.3%

   Higher BTC production and holdings plus note of US$10.5M shareholder commitment.

5. Dec 30

   EWCL investment deal

   24h Move

   -6.6%

   Announced US$10.5M Class B share investment from EWCL to fund growth initiatives.

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, class a ordinary shares

2 terms

class b ordinary shares financial

"the Company recently issued 7 million Class B ordinary shares, each carrying 20 votes per share"

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.

class a ordinary shares financial

"29,975,137 Class A ordinary shares of the Company, each carrying one vote per share"

Class A ordinary shares are a type of ownership stake in a company that typically grants voting rights to shareholders, allowing them to have a say in important company decisions. They often come with priority in receiving dividends or profits, making them attractive to investors seeking influence and potential income. These shares help distinguish different levels of ownership and rights within a company's stock structure.

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

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

DALLAS, Feb. 12, 2026 /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 it closed the previously announced US$10.5 million equity investment from Enduring Wealth Capital Limited ("EWCL"), and entered into definitive agreements with entities wholly-owned by Mr. Xin Jin, Chairman of the Company, and Mr. Chang-Wei Chiu, a director of the Company, pursuant to which these entities agreed to make equity investments in the aggregate amount of US$65 million in the Company.

As previously announced, the Company entered into an investment agreement with EWCL on December 29, 2025, and pursuant to the agreement, the Company recently issued 7 million Class B ordinary shares, each carrying 20 votes per share, to EWCL at a price of US$1.50 per share (the "Class B Investment"). After closing of the Class B Investment, EWCL's beneficial ownership increased from approximately 2.81% to approximately 4.71% of the Company's total outstanding ordinary shares, and its voting power increased from approximately 36.68% to approximately 49.71% of the Company's total voting power.

To reaffirm their confidence in the Company's strategic trajectory and future business prospects, Mr. Jin and Mr. Chiu indicated to the Company their interests in making equity investments in the Company. Upon approval of the Company's audit committee and the board of directors, the Company entered into (i) an investment agreement with Fortune Peak Limited ("FPL"), an entity wholly owned by Mr. Chiu, pursuant to which the Company agrees to issue to FPL, and FPL agrees to subscribe for, 29,975,137 Class A ordinary shares of the Company, each carrying one vote per share, for an aggregate purchase price of US$39,567,181 (the "Mr. Chiu Class A Investment"), and (ii) an investment agreement with Armada Network Limited ("ANL"), an entity wholly owned by Mr. Jin, pursuant to which the Company agrees to issue to ANL, and ANL agrees to subscribe for, 19,267,287 Class A ordinary shares of the Company, each carrying one vote per share, for an aggregate purchase price of US$25,432,819 (the "Mr. Jin Class A Investment", together with the Mr. Chiu Class A Investment, the "Proposed Class A Investments"). The purchase price implied a per-share price of US$1.32 and was determined by the parties with reference to the closing price of the Class A ordinary shares of the Company over the preceding four weeks.

Upon closing of both the Mr. Jin Class A Investment and the Mr. Chiu Class A Investment, Mr. Chiu is expected to hold approximately 11.99% of the total outstanding shares, and approximately 6.71% of the total voting power of the Company's outstanding shares; and Mr. Jin is expected to hold approximately 4.70% of the total outstanding shares and approximately 2.63% of the total voting power of the Company's outstanding shares.

The Company intends to use the proceeds from the Class B Investment and the Proposed Class A Investments to support its expansion into AI and computing infrastructure, while further strengthening its balance sheet.

Closing of each of the Mr. Jin Class A Investment and the Mr. Chiu Class A Investment is subject to certain customary closing conditions, including the requisite approvals by the New York Stock Exchange. While closing of the two Proposed Class A Investments are separate and not conditional upon each other, the Company expects to close both Proposed Class A Investments in February 2026. There can be no assurance that all the closing conditions will be satisfied for either Proposed Class A Investment, or that either Proposed Class A 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 press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words or phrases such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about Cango's beliefs and expectations, are forward-looking statements. These statements are based on Cango's current expectations and assumptions and are not guarantees of future performance. 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 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: cango@christensencomms.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/cango-inc-closed-the-previously-announced-us10-5-million-equity-investment-from-ewcl-and-secured-us65-million-additional-equity-investments-302686123.html

SOURCE Cango Inc.

FAQ

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

What did Cango (CANG) announce on February 12, 2026 about new equity investments?

Cango announced it closed a US$10.5 million investment and secured US$65 million in additional equity agreements. According to the company, 7.0 million Class B shares were issued at US$1.50 and definitive agreements were signed for Class A subscriptions totaling US$65 million, subject to closing conditions.

How much are the equity investments from Xin Jin and Chang-Wei Chiu in Cango (CANG)?

The two insiders agreed to invest a combined US$65 million in Class A shares. According to the company, Mr. Chiu's entity will pay US$39,567,181 for 29,975,137 Class A shares and Mr. Jin's entity US$25,432,819 for 19,267,287 Class A shares.

What ownership and voting changes occurred after EWCL's Class B investment in Cango (CANG)?

EWCL's share ownership rose to approximately 4.71% and voting power to about 49.71%. According to the company, Cango issued 7.0 million Class B shares at US$1.50, each carrying 20 votes per share, increasing EWCL's beneficial ownership and voting influence.

How does Cango (CANG) plan to use proceeds from the US$75.5 million in investments?

Cango intends to use the proceeds to expand its AI and computing infrastructure and to strengthen its balance sheet. According to the company, funds from the Class B and Proposed Class A investments will support its energy, AI compute platform expansion and balance sheet resilience.

When will the Proposed Class A investments for Cango (CANG) close and are there any conditions?

The company expects to close both Proposed Class A investments in February 2026, subject to customary conditions. According to the company, each closing requires customary closing conditions including requisite approvals by the New York Stock Exchange and completion is not assured.