/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, June 11, 2020 /CNW/ - Hut 8 Mining Corp. (TSX:
HUT) (OTCQX: HUTMF) ("Hut 8" or the "Company") is
pleased to announce that in connection with its previously
announced overnight marketed offering, it has entered into an
underwriting agreement with a syndicate of underwriters led by
Stifel GMP and including Canaccord Genuity Corp., Echelon
Wealth Partners Inc. Gravitas Securities Inc., Haywood Securities
Inc., and Richardson GMP Limited (collectively, the
"Underwriters") to sell 5,172,500 units of the Company (the
"Units") at a price of $1.45
per Unit (the "Offering Price") for gross proceeds of
$7,500,125 (the
"Offering").
Each Unit will consist of one (1) common share (a "Common
Share") and one (1) common share purchase warrant (a
"Warrant"). Each Warrant will entitle the holder thereof to
purchase one additional common share of the Company at an exercise
price of $1.80 per share over a
period of 18 months from closing of the Offering.
The Company has agreed to grant the Underwriters an
over-allotment option to purchase up to an additional 15% of the
Offering on the same terms, exercisable any time up to 30 days
following closing of the Offering, for market stabilization
purposes and to cover over-allotments.
The Company plans to use the net proceeds from the Offering to
upgrade existing mining equipment with more efficient processing
chips.
The Offering is scheduled to close on or about June 25, 2020, and is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the Toronto Stock
Exchange.
The Units to be issued under the Offering will be offered by way
of short form prospectus in each of the Provinces and Territories
of Canada, except Quebec, and may be offered in the United States on a private placement basis
pursuant to the exemption from the registration requirements the
United States Securities Act of 1933, as amended, and applicable
state securities laws, and certain other jurisdictions outside of
Canada and the United States.
This press 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 press 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.
Forward-looking Statements
This news release includes "forward-looking information" and
"forward-looking statements" within the meaning of Canadian
securities laws and United States
securities laws, respectively (collectively, "forward-looking
information"). All information, other than statements of historical
facts, included in this news release that address activities,
events or developments that the Company expects or anticipates will
or may occur in the future, including such things as future
business strategy, competitive strengths, goals, expansion and
growth of the Company's businesses, operations, plans and other
such matters is forward-looking information. Forward-looking
information is often identified by the words "may", "would",
"could", "should", "will", "intend", "plan", "anticipate",
"believe", "estimate", "expect" or similar expressions and
includes, among others, information regarding: completion of the
Offering; the intended use of proceeds from the Offering;
expectations regarding future revenues, earnings, capital
expenditures and operating and other costs; business strategy and
objectives; market trends; the sufficiency of cash and working
capital for future operating activities; expectations for other
economic, business, regulatory and/or competitive factors related
to the Company or the bitcoin industry generally; the anticipated
timing for the receipt of licences; anticipated production
capacity; and other events or conditions that may occur in the
future.
Investors are cautioned that forward-looking information is not
based on historical facts but instead is based on reasonable
assumptions and estimates of management of the Company at the time
they were made and involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking information. Such factors include, among
others, risks relating to investing in the Units; discretion in the
use of proceeds; the ability to raise additional funds; there being
no current market for the Warrants; investing in the Warrants being
speculative; volatility of the market price for the Common Shares
generally; risk of dilution; changes in the price of Bitcoin; the
Company's reliance on a limited number of key employees; and
fluctuations in energy prices as well as the risk factors described
in the Company's annual information form dated April 3, 2020 and other filings with the Canadian
securities regulators available under the Company's profile on
SEDAR at www.sedar.com.
About Hut 8
Hut 8 Mining Corp., headquartered in Toronto, Canada, is a cryptocurrency mining
company established through an exclusive arrangement with the
Bitfury Group, the world's leading full-service blockchain
technology company. Through the Bitfury Group, Hut 8 has access to
a world-leading proprietary mix of hardware, software and
operational expertise to construct, optimize and manage data
centers in low-cost and attractive jurisdictions. Hut 8 is led by a
team of industry experts and intends to provide investors with
exposure to blockchain processing infrastructure and technology
along with underlying cryptocurrency rewards and transaction
fees.
Hut 8 provides investors with direct exposure to bitcoin without
the technical complexity or constraints of purchasing the
underlying cryptocurrency. Investors avoid the need to create
online wallets, wire money offshore and safely store their bitcoin.
Hut 8 provides a secure and simple way to invest.
SOURCE Hut 8 Mining Corp.
