SAIHEAT Limited (Nasdaq: SAIH) has entered into a definitive merger agreement with Canopy Wave, Inc., an AI inference and GPU cloud platform company based in Santa Clara, California.
Upon completion, Canopy Wave will become a wholly-owned subsidiary, and the combined entity will be renamed Canopy Wave Holdings Inc., trading on Nasdaq under the ticker symbol CWAV.
The merger involves issuing new SAIHEAT Class A and Class B ordinary shares to Canopy Wave's shareholders, valuing Canopy Wave at $60 million and SAIHEAT at $40 million.
As a result, former Canopy Wave stockholders will hold approximately 54.19 percent of the economic interests and 78.44 percent of the voting power in the combined company.
This includes a concurrent private placement of Class A Ordinary Shares by SAIHEAT, expected to raise $4.5 million at $18.15 per share.
The transaction is anticipated to close by the end of 2026.
"This combination will position the company where the AI market is going: inference at scale," said Jianwei Li, Chief Executive Officer of SAIHEAT. "Canopy Wave brings an inference platform and an exceptional engineering team. Combined with our infrastructure capabilities, we believe we can build a competitive inference offering."