Digihost Announces Closing of CAD$25 Million Brokered Private Placement With Institutional Investors
April 13 2021 - 2:25PM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; OTCQB: HSSHF) is pleased
to announce that the Company has closed its previously announced
private placement of equity securities (the
“
Offering”). The offering was for gross proceeds
of CAD$25 million in a private placement of its equity securities
and consisted of the sale of 11,682,243 common shares of the
Company (“
Shares”) and warrants to purchase
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 an
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. acted as the exclusive
placement agent for the private placement.
H.C. Wainwright & Co. received (i) a cash
commission equal to 8.0% of the gross proceeds of the Offering and
(ii) 934,579 non-transferable broker warrants (the “Broker
Warrants”). Each Broker Warrant will entitle the holder to
purchase one common share at an exercise price of CAD$2.675 at any
time for a period of four years from the issuance date.
The securities issued under the Offering are
subject to customary resale restrictions in the United States with
no resale restrictions in Canada. 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 technology company primarily focused on Bitcoin mining.
The Company’s mining facilities are located in Upstate New
York, and are equipped with 78.7 MW of low-cost power with the
option to expand to 102MW. The Company is currently hashing at a
rate of 190PH with potential to expand to a rate of 3EH upon the
completion of the previously announced acquisition of a 60MW power
plant.
For further information, please contact:
Digihost Technology
Inc.www.digihost.caMichel Amar, Chief
Executive Officer T: 1-818-280-9758Email: 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 Offering including closing of the Offering
and approval of the TSX Venture thereof and the use of net proceeds
from the Offering, 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.
Digihost Technology (TSXV:DGHI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Digihost Technology (TSXV:DGHI)
Historical Stock Chart
From Apr 2023 to Apr 2024