Cango has issued a warning that it faces potential delisting from the New York Stock Exchange if its share price fails to climb back above $1 within a six-month window. The company’s shares have fallen below the exchange’s minimum price threshold, triggering the compliance concern. Failure to meet the requirement within the allotted timeframe could result in the stock being removed from the exchange.
As part of efforts to shore up its financial position, Cango has issued a $10 million convertible note to DL Holdings. The move forms part of a broader strategic partnership between the two firms. Convertible notes of this kind can later be converted into equity, giving the holder a stake in the company under agreed terms.
Separately, Cango has closed a $65 million equity investment led by company insiders. The investment was paid in USDT, a US dollar-pegged stablecoin, rather than traditional currency. The involvement of insiders in leading the round signals a degree of internal confidence in the company’s direction despite the share price difficulties.
The combination of the convertible note and the equity raise represents a significant capital mobilisation effort by Cango as it navigates its current challenges. Together, the two transactions bring in a substantial sum intended to support the company’s operations and strategic goals. The use of USDT for the equity payment is a notable feature, reflecting the company’s engagement with digital asset instruments.
The six-month deadline imposed by the NYSE creates a defined timeline within which Cango must demonstrate a sustained recovery in its share price. Exchanges typically require a stock to trade above $1 for a set number of consecutive trading days to regain compliance. The company has not yet disclosed specific measures it plans to take to achieve that recovery beyond the financing arrangements already announced.
Originally reported by CoinDesk.
