Digihost Announces CAD$25 Million Private Placement With Institutional Investors
April 06 2021 - 10:31PM
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 11,682,243 common shares of the
Company (“
Shares”) and warrants to purchase up to
11,682,243 common shares (“
Warrants”), at a
purchase price of CAD$2.14 per Share and associated Warrant. The
Warrants have an exercise price of CAD$2.37 per Share and exercise
period of four 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 April 9, 2021, subject to satisfaction of customary closing
conditions, 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 shall 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
Statement Trading 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
Statements Except 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; 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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