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UNITED STATES/
TORONTO, June 25, 2020 /CNW/ - Hut 8 Mining Corp.
(TSX: HUT) (the "Company") is pleased to
announce that it has closed its previously announced underwritten
public offering (the "Offering") through a syndicate of
underwriters led by Stifel GMP (the "Lead Underwriter"),
Canaccord Genuity Corp., Echelon Wealth Partners Inc., Gravitas
Securities Inc., Haywood Securities Inc., and Richardson GMP
Limited (together with the Lead Underwriter, the
"Underwriters"). In connection with the closing of the
Offering, the Underwriters have partially exercised their
over–allotment option. The Company issued 5,750,456 units
("Units") at a price of $1.45 per Unit (the "Offering Price") for
aggregate gross proceeds to the Company of $8,338,161.
Each Unit is comprised of one common share (each a "Common
Share") and one Common Share purchase warrant of the Company
(each a "Warrant"). Each Warrant will entitle the holder
thereof to acquire one additional Common Share of the Company (each
a "Warrant Share") at an exercise price of $1.80 per Warrant Share at any time for a period
of 18 months from today.
The Company will use the net proceeds from the Offering for
upgrading existing mining equipment with more efficient processing
chips from MicroBT, one of the leading suppliers in the industry.
Hut 8 expects to purchase a mix of MicroBT's Whatsminer M30S, M31S,
and M31S+ to upgrade an estimated 12.6MW with output of
approximately 275 Petahash per second ("PH/s"). This upgrade will
increase Hut 8's maximum operating capacity by up to 200 PH/s. Hut
8 has been testing the MicroBT equipment for the past three months
in preparation of this upgrade. Hut 8 is expected to receive
equipment between July and November
2020.
"Our team is thrilled to implement this upgrade and continue
providing investors exposure to both bitcoin mining and bitcoin
itself," commented Jimmy Vaiopoulos,
Interim CEO. "We're proud to close the first prospectus offering by
a cryptocurrency mining company in Canada and further improve Hut 8's lead as one
of the largest public bitcoin miners."
The TSX has conditionally approved the listing of the Common
Shares and Warrants comprising the Units, and the Warrant Shares
issuable upon exercise of the Warrants. Listing will be subject to
the fulfillment by the Company of the customary listing conditions
of the TSX. The Offering was made pursuant to a short form
prospectus dated June 22, 2020 and
filed with the securities regulatory authorities in each of the
Provinces and Territories of Canada, except Quebec.
This press release shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of
the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
This press release does not constitute an offer of securities for
sale in the United States. The
securities being offered have not been, nor will they be,
registered under the United States Securities Act of 1933, as
amended, and such securities may not be offered or sold within
the United States absent
registration under U.S. federal and state securities laws or an
applicable exemption from such U.S. registration
requirements.
About the Company
Hut 8 is a bitcoin mining company with industrial scale
operations in Canada. Hut 8 is
headquartered in Toronto and
operates two sites in Alberta,
Canada utilizing 94 BlockBox AC Data Centers with current
maximum operating capacity of 107 MW and 952 PH/s. Hut 8 creates
value for investors through low production costs in attractive
jurisdictions and appreciation of its bitcoin inventory. The
Company provides investors with direct exposure to bitcoin, without
the technical complexity or constraints of purchasing the
underlying cryptocurrency. Investors avoid the need to create
online wallets, wire money offshore, and safely store their
bitcoin. Hut 8 provides a secure and simple way to invest in
bitcoin.
The Company's common shares are listed under the symbol "HUT" on
the TSX and as "HUTMF" on the OTCQX Exchange.
Cautionary Note Regarding Forward–Looking
Information
This press release includes "forward-looking information" and
"forward-looking statements" within the meaning of Canadian
securities laws and United States
securities laws, respectively (collectively, "forward-looking
information"). All information, other than statements of historical
facts, included in this press release that address activities,
events or developments that the Company expects or anticipates will
or may occur in the future, including such things as future
business strategy, competitive strengths, goals, expansion and
growth of the Company's businesses, operations, plans and other
such matters is forward-looking information. Forward-looking
information is often identified by the words "may", "would",
"could", "should", "will", "intend", "plan", "anticipate",
"believe", "estimate", "expect" or similar expressions and
includes, among others, information regarding: completion of the
Offering; the intended use of proceeds from the Offering; business
strategy and objectives; market trends; the sufficiency of cash and
working capital for future operating activities; expectations for
other economic, business, regulatory and/or competitive factors
related to the Company or the bitcoin industry generally; the
anticipated timing for the receipt of equipment; anticipated
production capacity; and other events or conditions that may occur
in the future.
Forward-looking information is not based on historical facts
but instead is based on reasonable assumptions and estimates of
management of the Company at the time they were made and involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking information. Such factors include, among others,
risks relating to investing in the Units; discretion in the use of
proceeds; the ability to raise additional funds; there being no
current market for the Warrants; investing in the Warrants being
speculative; volatility of the market price for the Common Shares
generally; market uncertainties resulting from the COVID-19
pandemic; risk of dilution; changes in the price of bitcoin; the
Company's reliance on a limited number of key employees; and
fluctuations in energy prices as well as the risk factors described
in the Company's annual information form dated April 3, 2020 and other filings with the Canadian
securities regulators available under the Company's profile on
SEDAR at www.sedar.com.
SOURCE Hut 8 Mining Corp.