CANG · Cango Inc.

Cango Inc. has secured a strategic financing package through a Securities Purchase Agreement with DL Holdings Group Limited, a Hong Kong-listed financial services group. The transaction involves a US$10 million convertible note and a warrant to purchase 370,370 Class A ordinary shares. The convertible note carries an initial conversion price of US$1.62 per share, representing a significant equity-linked financing component. The note's structure is favorable for the company, with no interest accrual unless an event of default occurs, at which point a 6% annual rate applies. The maturity is set for two years from issuance (April 1, 2028), with an option for the holder to extend to three years.

The accompanying warrant allows DL Holdings to purchase up to 370,370 Class A ordinary shares at an exercise price of US$2.70 per share, exercisable immediately and expiring on April 1, 2028. This dual-instrument structure provides Cango with immediate capital while potentially deferring equity dilution. The company has committed to using the proceeds specifically for cryptocurrency mining facilities and AI data center initiatives, aligning with its strategic pivot toward digital asset infrastructure and artificial intelligence. Notably, the proceeds are explicitly restricted from being used for shareholder distributions or debt repayment, ensuring the capital is deployed for growth initiatives.

The transaction also includes a lock-up agreement restricting the transfer of shares issued upon conversion of the note for a one-year period, providing stability to the company's shareholder base. This financing complements a separate US$65 million strategic investment from company leadership, collectively strengthening Cango's balance sheet and liquidity position as it executes its transition into the AI and energy infrastructure space.