Digihost Announces Filing of US$125 Million Preliminary Base Shelf Prospectus
March 11 2021 - 6:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; OTCQB: HSSHF) is pleased
to announce that it has filed a preliminary base shelf prospectus
with the securities regulatory authorities in the provinces of
British Columbia, Alberta and Ontario.
Upon a final base shelf prospectus (the
“Shelf Prospectus”) becoming effective, the Shelf
Prospectus will be valid for a 25-month period, during which time
the Company may issue common shares, warrants, subscription
receipts, units, debt securities and share purchase contracts (the
“Securities”) on terms based on market conditions
at the time of sale and as set forth in an accompanying prospectus
supplement (“Prospectus Supplement”), having an
aggregate offering amount of up to US$125 million.
Michel Amar, the Company’s CEO stated: “We are
extremely excited to have taken this very positive step forward in
the evolution of our growing company. Having ready and quicker
access to the capital markets, and being able to expeditiously
react to favourable conditions, Digihost will be able to execute
more effectively its plan for rapid expansion in the blockchain
sector and its Bitcoin mining operations, while continuing to
create sustainable shareholder value.”
Unless otherwise specified in a Prospectus
Supplement, the net proceeds from the sale of Securities may be
used for general corporate and working capital requirements,
funding ongoing operations, to repay indebtedness outstanding from
time to time, to complete future acquisitions, or for other
corporate purposes. Each Prospectus Supplement will contain
specific information concerning the use of proceeds from that sale
of Securities. There is no certainty that any Securities will be
offered or sold under the Shelf Prospectus within the 25-month
period.
This news release does not constitute an offer
to sell or the solicitation of an offer to buy securities in the
United States or in any jurisdiction where the offer, sale or
solicitation would be unlawful. The Securities referred to in this
news release may not be offered or sold in the United States absent
registration or an applicable exemption from registration.
A copy of the preliminary base shelf prospectus
can be found on the Company’s SEDAR profile at www.sedar.com.
About Digihost Technology Inc.
Digihost Technology Inc. is a growth-oriented blockchain company
primarily focused on Bitcoin mining. The Company's mining facility
is located in Buffalo, N.Y., and is equipped with an 18.7MVA
115,000-kilovolt-ampere outdoor substation with an option to
increase the power output to 42MVA. The Company is currently mining
approximately 1.2 Bitcoins per day, subject to difficulty.
Digihost’s strategy is to focus on continually increasing its
hashrate with a concurrent reduction in energy costs.
For further information, please contact:
Digihost Technology
Inc.www.digihost.caMichel Amar, Chief
Executive Officer Email: michel@digihost.ca
Cautionary StatementTrading in
the securities of the Company should be considered highly
speculative. No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information
contained herein. Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Forward-Looking
StatementsExcept for the statements of historical fact,
this news release contains “forward-looking information” within the
meaning of the applicable Canadian securities legislation that is
based on expectations, estimates and projections as at the date of
this news release. “Forward-looking information” in this news
release includes information about potential further improvements
to profitability and efficiency across mining operations, potential
for the Company’s long-term growth, and the business goals and
objectives of the Company. Factors that could cause actual results
to differ materially from those described in such forward-looking
information include, but are not limited to: continued effects of
the COVID19 pandemic may have a material adverse effect on the
Company’s performance as supply chains are disrupted and prevent
the Company from operating its assets; a decrease in cryptocurrency
pricing, volume of transaction activity or generally, the
profitability of cryptocurrency mining; further improvements to
profitability and efficiency may not be realized; the digital
currency market; the Company’s ability to successfully mine digital
currency on the cloud; the Company may not be able to profitably
liquidate its current digital currency inventory, or at all; a
decline in digital currency prices may have a significant negative
impact on the Company’s operations; the volatility of digital
currency prices; and other related risks as more fully set out in
the Annual Information Form of the Company and other documents
disclosed under the Company’s filings at www.sedar.com. The
forward-looking information in this news release reflects the
current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about: the current
profitability in mining cryptocurrency (including pricing and
volume of current transaction activity); profitable use of the
Company’s assets going forward; the Company’s ability to profitably
liquidate its digital currency inventory as required; historical
prices of digital currencies and the ability of the Company to mine
digital currencies on the cloud will be consistent with historical
prices; and there will be no regulation or law that will prevent
the Company from operating its business. The Company has also
assumed that no significant events occur outside of the Company's
normal course of business. Although the Company believes that the
assumptions inherent in the forward-looking information are
reasonable, forward-looking information is not a guarantee of
future performance and accordingly undue reliance should not be put
on such information due to the inherent uncertainty therein.
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