(RTTNews) - Cango Inc. (CANG), an automotive transaction service platform in China, on Friday announced that its Board of Directors received a preliminary non-binding letter of intent from Enduring Wealth Capital Ltd. to obtain control of the Company through a series of proposed actions.
The letter of intent is intended to support the company's expansion outside China, particularly in its new crypto mining business.
Enduring Wealth Capital, a financial planning and investment management services company plans to acquire Cango through 10 million Class B shares from co-founders Xiaojun Zhang and Jiayuan Lin at a mutually agreed price.
Cango said it will take the necessary steps to ensure these shares retain 20 votes per share.
Meanwhile, the co-founders will convert their remaining Class B shares into Class A shares with one vote each and step down from the Board and all senior management roles.
Additionally, Enduring Wealth Capital intends to restructure the company's Board and management as per its requirements.
On March 14, 2025, the Board created a special committee with three independent directors Chi Ming Lee, Dongsheng Zhou, and Rong Liu to review the Letter of Intent and the Proposed Transactions.
Additionally, the company should apply to the China Securities Regulatory Commission to end its classification as a 'China Concept Stock' under CSRC regulations. These proposed actions are collectively referred to as the 'Proposed Transactions.'
In the pre-market trading, Cango is 12.12% higher at $3.70 on the Nasdaq.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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