Digihost Announces CAD$25 Million Brokered Private Placement with Institutional Investors
March 11 2021 - 10:06PM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; OTCQB: HSSHF) is pleased
to announce that the Company has entered into subscription
agreements with certain institutional investors, for gross proceeds
of approximately CAD$25 million in a private placement of its
equity securities, comprised of 9,363,296 common shares of the
Company (“
Shares”) and warrants to purchase up to
9,363,296 common shares (“
Warrants”), at a
purchase price of CAD$2.67 per Share and associated Warrant. The
Warrants have an exercise price of CAD$3.14 per Share and exercise
period of three years from the issuance date. The net proceeds of
the private placement will be used by the Company primarily to
acquire additional Bitcoin miners, infrastructure expansion,
further reduce energy costs and for working capital purposes.
H.C. Wainwright & Co. is acting as the
exclusive placement agent for the private placement.
The private placement is expected to close on or
about March 16, 2021, subject to the receipt of all required
corporate and regulatory approvals including the approval of the
TSX Venture Exchange.
No securities were offered or sold to Canadian
residents in connection with the private placement.
This news 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 news 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 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 of the date of this news release.
“Forward-looking information” in this news release includes
information about the Private Placement including closing of the
Private Placement and approval of the TSX Venture thereof and the
use of net proceeds from the Private Placement, 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:
market and other conditions, continued effects of the COVID-19
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;
the availability of electricity at prevailing rates and on a
continuous basis; the adequacy and security of custody for coins
maintained in inventory; 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; the pricing of electricity at historical rates; the
adequacy and security of custody for coins maintained in inventory;
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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