Major shareholder Enduring Wealth Capital Limited (EWCL) will purchase 7 million Class B common shares of Cango Inc. for $10.5 million in cash, increasing its voting power to 49.61% upon completion.
The deal is expected to close in January 2026 and is subject to approval from the NYSE. Class B shares in the transaction have 20 voting rights per share, giving EWCL a significant advantage in terms of voting rights relative to its ownership stake.
- EWCL purchased 7 million Class B shares of Cango Inc. for $10.5 million.
- The ownership stake increased from 2.81% to approximately 4.69%.
- Voting rights increased from 36.68% to 49.61%; completion is expected in January 2026.
Transaction details and voting rights implications
EWCL will subscribe to purchase 7 million Class B common shares of Cango Inc. for $10.5 million in cash; each share has 20 voting rights.
Upon completion, EWCL's ownership stake is expected to increase from 2.81% to approximately 4.69%. Although the increase in ownership is not significant, the structure of Class B shares, which carry substantial voting rights, will significantly increase EWCL's influence.
EWCL's voting power is expected to increase from 36.68% to 49.61%, approaching voting control. This could alter the balance of governance at Cango Inc. without requiring a corresponding increase in ownership stake.
Completion progress and conditions
The transaction is expected to be completed in January 2026 and requires approval from the NYSE.
Cango Inc. stated that this is a subscription to Class B shares from major shareholder EWCL. The transaction deadline and approval conditions are key factors before the official update of the shareholder structure and voting rights.
