Core Scientific Enhances Liquidity through $100 million Committed Equity Facility
July 21 2022 - 8:10AM
Business Wire
- Provides the right, without the obligation, to sell up to $100
million of its common stock over 24 months to B. Riley Principal
Capital at Core Scientific’s discretion, subject to certain
limitations
Core Scientific, Inc. (NASDAQ: CORZ) ("Core Scientific"
or “the Company”), a leader in high-performance blockchain data
centers and software solutions, today announced it entered into a
$100 million common stock purchase agreement with B. Riley
Principal Capital II, LLC (“B. Riley”).
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Core Scientific is one of the largest
publicly traded blockchain data center providers and miners of
digital assets in North America. (Graphic: Business Wire)
“Securing access to additional capital during adverse market
conditions enhances our liquidity and expands our strategic
optionality,” said Mike Levitt, Core Scientific Chief Executive
Officer. “We continue to strengthen our balance sheet and
streamline our operations as we remain focused on expanding our
capacity for self-mining and colocation services. This Committed
Equity Facility with B. Riley is an important additional funding
source that will help us grow and create shareholder value.”
Under the agreement, Core Scientific has the right, without
obligation, to sell and issue up to $100 million of shares of its
common stock to B. Riley, subject to certain limitations and
satisfaction of certain conditions. Purchase notices may be issued
to B. Riley over a 24-month period. Core Scientific issued B. Riley
573,381 shares of common stock as consideration for B. Riley’s
commitment to purchase Core Scientific common stock under the
purchase agreement. Further details will be contained in a Current
Report on Form 8-K Core Scientific will file with the Securities
and Exchange Commission.
ABOUT CORE SCIENTIFIC
Core Scientific is one of the largest publicly traded blockchain
data center providers and miners of digital assets in North
America. Core Scientific has operated blockchain data centers in
North America since 2017, using its facilities and intellectual
property portfolio for colocated digital asset mining and
self-mining. Core Scientific operates data centers in Georgia,
Kentucky, North Carolina, North Dakota and Texas, and expects to
commence operations in Oklahoma in the second half of 2022. Core
Scientific’s proprietary Minder® fleet management software combines
the Company’s colocation expertise with data analytics to deliver
maximum uptime, alerting, monitoring and management of all miners
in the Company’s network. To learn more, visit
http://www.corescientific.com.
FORWARD LOOKING STATEMENTS AND EXPLANATORY NOTES
This press release includes “forward-looking statements'' within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
“estimate,” “plan,” “project,” “forecast,” “intend,” “will,”
“expect,” “anticipate,” “believe,” “seek,” “target” or other
similar expressions that predict or indicate future events or
trends or that are not statements of historical facts. These
forward-looking statements include, but are not limited to, future
sales of common stock pursuant to the purchase agreement with B.
Riley, current and future business plans and strategy and future
estimates of liquidity and future financing availability. These
statements are provided for illustrative purposes only and are
based on various assumptions, whether or not identified in this
press release, and on the current expectations of the Company’s
management. These forward-looking statements are not intended to
serve, and must not be relied on by any investor, as a guarantee,
an assurance, a prediction or a definitive statement of fact or
probability. Actual events and circumstances are difficult or
impossible to predict and will differ from assumptions. Many actual
events and circumstances are beyond the control of the Company.
These forward-looking statements are subject to a number of risks
and uncertainties, including those identified in the Company’s
reports filed with the U.S. Securities & Exchange Commission,
and if any of these risks materialize or our assumptions prove
incorrect, actual results could differ materially from the results
implied by these forward-looking statements. Accordingly, undue
reliance should not be placed upon the forward-looking
statements.
This press release is for informational purposes only and it
does not represent an offer to sell or the solicitation of an offer
to buy any of the Company’s common stock. There will be no sale of
common stock in any jurisdiction in which one would be
unlawful.
For additional media and information, please follow
us
https://www.linkedin.com/company/corescientific/
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View source
version on businesswire.com: https://www.businesswire.com/news/home/20220721005374/en/
Investors: Steven Gitlin ir@corescientific.com
Media: press@corescientific.com
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