Exhibit 99.1
CANGO INC. ANNOUNCES CERTAIN UPDATES
SHANGHAI, April 22, 2022 /PRNewswire/ — Cango Inc. (NYSE: CANG) (“Cango” or the “Company”), a leading automotive transaction service platform in China, today announced (i) the declaration of a special cash dividend, (ii) a new share repurchase program, and (iii) option grants to certain executive officers.
Special Cash Dividend
Cango’s board of directors has approved and declared a special cash dividend of US$0.5 per ordinary share (or US$1 per American depository share) on its outstanding shares, to be paid on June 15, 2022 (Eastern Time) to shareholders of record as of the close of trading on May 25, 2022 (Eastern Time).
New Share Repurchase Program
Cango’s board of directors has authorized a new share repurchase program (the “New 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 April 25, 2022.
Under the New 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. In addition, 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 number of ADSs repurchased and the timing of repurchases will depend on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with Cango’s working capital requirements and general business conditions. The Company’s board of directors will review the New 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.
On August 19, 2021, the Company announced a share repurchase program (the “Existing Share Repurchase Program”) under which the Company may repurchase up to US$50 million worth of its outstanding ADSs and/or Class A ordinary shares. Pursuant to the Existing Share Repurchase Program, the Company had repurchased 6,241,379 ADSs from the open market with cash in the aggregate amount of approximately US$23.0 million up to April 21, 2022. For avoidance of doubt, the Existing Share Repurchase Program will remain in effect until its expiration on August 25, 2022.
Option Grants
Cango’s board of directors has authorized the grant of (i) an option to purchase 6,000,000 Class A ordinary shares to Mr. Xiaojun Zhang, Cango’s co-founder and chairman, and (ii) an option to purchase 6,000,000 Class A ordinary shares to Mr. Jiayuan Lin, Cango’s co-founder, director and chief executive officer. These share options are granted in consideration of Mr. Zhang and Mr. Lin’s roles in guiding Cango’s profitable investment in Li Auto Inc., a provider of new energy passenger vehicles in China. The share options vest immediately upon grant and have an exercise price of US$1.2951 per Class A ordinary share.
