DL Holdings GP (01709) and Cango entered into a securities purchase agreement and memorandum of understanding.

DL HOLDINGS GP (01709) announced that on April 1, 2026 (after trading hours), the company entered into a securities purchase agreement with Cango Inc. (Cango) to issue and sell, and the company to subscribe for, a two-year zero-coupon convertible note with a principal amount of USD 10 million (subscription matter), under which the notes can be converted into Cango's Class A common stock at a conversion price of USD 1.62 per share (convertible notes), as well as warrants to purchase up to 370,400 shares of Cango Class A common stock at an exercise price of USD 2.70 per share. Additionally, an non-legally binding Memorandum of Understanding was signed, outlining indicative terms for a proposed AI strategic cooperation framework. Under this framework, the company may make additional AI strategic investments up to a total amount of USD 10 million following due diligence, agreed-upon project specifications, and final documentation, including: (i) acquisition, development, upgrade or refurbishment of cryptocurrency mining fields or other cryptocurrency mining facilities; and (ii) artificial intelligence programs and capital expenditures/investments related to AI data centers. These opportunities may include GPU-based inference deployments, containerized inference clusters, and related infrastructure (AI strategic investments). According to the Memorandum of Understanding, as long as the company holds all convertible notes, both the company and Cango may notify each other of potential AI strategic investment opportunities deemed suitable for the other party's participation, prior to seeking involvement from third-party investors, except for certain exclusions. The board also believes that the Memorandum of Understanding provides a robust framework for exploring broader AI strategic investments and potential future investment opportunities related to acquisitions, development, upgrade or refurbishment of cryptocurrency mining facilities, artificial intelligence programs, and AI data center projects. These opportunities may include GPU-based inference deployments, containerized inference clusters, and related support infrastructure. The board is confident that once AI strategic investments are implemented, it will expand the group's access to digital infrastructure opportunities and enhance the group's long-term growth potential.