- The stock price of Cango Inc. (NYSE: CANG) increased by 20.83%. This is why it happened.
The stock price of Cango Inc. (NYSE: CANG) – a leading automotive transaction service platform in China – increased by 20.83% as it went from a previous close of $8.16 to $9.86. Investors were responding to the company announcing that its board of directors has authorized a share repurchase program under which the company may repurchase up to US$50 million worth of its outstanding (i) American depositary shares (“ADSs”), each representing two Class A ordinary shares, and/or (ii) Class A ordinary shares over the next 12 months starting from the effective date of the share repurchase program.
The effective date will be two trading days after the Company issues its earnings release for the fourth quarter of 2020. And the company currently expects to issue such earnings release on or about March 12, 2021.
Under the share repurchase program, the company may repurchase its ADSs from time to time through open market transactions at prevailing market prices, privately negotiated transactions, block trades or any combination thereof. Plus Cango will also effect repurchase transactions in compliance with Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and its insider trading policy. The company’s board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The Company plans to fund the repurchases from its existing cash balance.
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