Digihost Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency
October 14 2022 - 4:00PM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (Nasdaq: DGHI; TSXV: DGHI), an
innovative U.S. based Bitcoin (“
BTC”) mining
company, today announced that on October 10, 2022 it received a
written notification (the “
Notification Letter”)
from the Nasdaq Stock Market LLC (“
Nasdaq”)
indicating that, for the last thirty consecutive business days, the
bid price for the Company’s Subordinate Voting Shares (the
“
Shares”) had closed below the
minimum US$1.00 per share requirement for continued
listing on Nasdaq under Nasdaq Listing Rule 5550(a)(2).
In accordance with Nasdaq Listing Rule
5810(c)(3)(A), the Company has been provided an initial period of
180 calendar days, or until April 10, 2023, to regain
compliance. The letter states that the Nasdaq staff will provide
written notification that the Company has achieved compliance with
Rule 5550(a)(2) if at any time before April 10, 2023, the bid
price of the Company’s Shares closes at US$1.00 per share
or more for a minimum of ten consecutive business days. The Nasdaq
letter is only a notification of deficiency and has no immediate
effect on the listing or trading of the Company’s Shares and the
Shares will continue to trade on Nasdaq under the symbol “DGHI.”
The Company’s Shares are also listed on the TSX Venture Exchange
and the Notification Letter does not affect the Company’s
compliance status with such listing.
The Company intends to monitor the bid price of
its Shares between now and April 10, 2023, and to evaluate its
available options to regain compliance with Nasdaq’s minimum bid
price rule within the compliance period. If the Company does not
regain compliance with Rule 5550(a)(2) by April 10, 2023, the
Company may be eligible for an additional 180 calendar day
compliance period.
The Company’s business operations are not
affected by the receipt of the Notification Letter and the Company
fully intends to resolve the deficiency and regain compliance with
the Nasdaq Listing Rules.
About Digihost
Digihost is a growth-oriented blockchain
technology company primarily focused on BTC mining. Through its
self-mining operations and joint venture agreements, the Company is
currently hashing at a rate of approximately 650 PH/s.
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” and
“forward-looking statements” (collectively, “forward-looking
information”) that are based on expectations, estimates and
projections as at the date of this news release and are covered by
safe harbors under Canadian and United States securities laws.
Forward-looking information in this news release includes
statements relating to Digihost Technology Inc. receiving
Nasdaq notification regarding minimum bid price deficiency,
information about potential further improvements to profitability
and efficiency across mining operations including, as a result of
the Company’s expansion efforts, 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: future capital needs and
uncertainty of additional financing, including the Company’s
ability to utilize the Company’s at-the-market offering program
(the “ATM Program”) and the prices at which the Company may sell
securities in the ATM Program, as well as capital market conditions
in general; share dilution resulting from the ATM Program and from
other equity issuances; risks relating to the strategy of
maintaining and increasing Bitcoin holdings and the impact of
depreciating Bitcoin prices on working capital; regulatory and
other unanticipated issues that prohibit us from declaring or
paying dividends to our shareholders that are payable in Bitcoin;
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;
development of additional facilities to expand operations in
Alabama may not be completed on the timelines anticipated by the
Company, or at all; the acquisition of North Tonawanda, New York
facilities closing on timely basis, or at all; ability to access
additional power from the local power grid; 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 Company’s ability to regain compliance
with the Nasdaq listing requirements; 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 ability to maintain reliable
and economical sources of power to run its cryptocurrency mining
assets; the negative impact of regulatory changes in the energy
regimes in the jurisdictions in which the Company operates; the
ability to adhere to Digihost’s dividend policy and the timing and
quantum of dividends based on, among other things, the Company’s
operating results, cash flow and financial condition, Digihost’s
current and anticipated capital requirements, and general business
conditions; 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 uncertainties therein.
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