RE:RE:Was Over $5.00 Just Last Weekquark_1 wrote:
are you kidding. They will have to re-price the PP. Nobody in his right mind will go for $3
The only 1 I see not in their right mind is......wait for it.......YOU! :)
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DMG ANNOUNCES CLOSING OF CDN$70 MILLION PRIVATE PLACEMENT OFFERING WITH INSTITUTIONAL INVESTORS
DMG Blockchain Solutions Inc. has closed its previously announced sale to U.S. and foreign institutional investors of its common shares and warrants to purchase common shares for aggregate gross proceeds to the company of approximately $70-million. Pursuant to the Private Placement, the company issued 23,333,334 Common Shares and Warrants to purchase up to 11,666,667 Common Shares at a purchase price of Cdn$3.00 per Common Share and associated half Warrant. Each whole Warrant entitles the holder thereof to purchase one common Share at an exercise price of Cdn$ 3.55 per Common Share at any time on or before March 5, 2024 (totaling another Cdn$41.4 million once exercised).
"We are very pleased to complete this equity financing above current market prices. The net proceeds from this financing will allow DMG to rapidly advance its business plan, its operations and pursue a variety of new projects. We are also very pleased to expand our institutional presence in the United States and abroad," commented Dan Reitzik, CEO and Sheldon Bennett, COO, who jointly managed this process for DMG.
H.C. Wainwright & Co. acted as the exclusive placement agent for the Private Placement.
H.C. Wainwright & Co. received (i) a cash commission of approximately Cdn$3.85 million (equal to 5.5% of the gross proceeds of the Private Placement) and (ii) 1,283,333 non-transferable compensation warrants (the "Agent Warrants"). Each Agent Warrant entitles the holder thereof to purchase one common Share at an exercise price of Cdn$3.75 per Common Share at any time on or before March 5, 2024.
The company intends to use the net proceeds of the Private Placement for infrastructure expansion (i.e., continued retrofitting of initially 30 and up to 60 MW capacity from air cooling to immersion cooling and general upgrades to the facility), equipment purchases (i.e., necessary technologies to expand DMG's self-mining infrastructure and hashrate at its Christina Lake facility to 2.0 EH/s in 2021 with the first 1.0 EH/s planned by this summer), investment in cryptocurrencies (i.e., buying Bitcoin), potential future acquisitions, equity interests and partnerships, software development (i.e., further advancements of Blockseer and Walletscore as part of DMG's ongoing Bitcoin mining pool efforts), immersion cooling research and prototyping (i.e., including all required technical components of various suppliers), expansion of marketing and sales activities and working capital and general corporate purposes. Details as to the intended specific allocation of the proceeds are disclosed in the Prospectus Supplement referred to below and further business development announcements will be made by DMG in due course as they arise.
The common Shares and Warrants issued under the Private Placement were qualified by way of a prospectus supplement dated March 4, 2021 under the company's base shelf prospectus dated March 1, 2021 (collectively, the "Prospectus Supplement") which was filed in each of the provinces of Canada, except Quebec, copies of which are available under the company's profile at www.sedar.com . The common Shares and Warrants were offered and sold in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and all applicable state securities laws, and in certain other jurisdictions in accordance with applicable securities laws. No securities were offered or sold to Canadian purchasers.
The securities issued under the Private Placement are subject to resale restrictions in the United States under applicable U.S. federal and state securities laws with no resale restrictions in Canada.
About DMG Blockchain Solutions Inc.
DMG is a vertically integrated blockchain and cryptocurrency company that manages, operates, and develops end-to-end digital solutions to monetize the blockchain ecosystem. DMG's businesses are segmented into three main divisions: data centre operations, data analytics and forensics and developing enterprise blockchains. DMG's data centre operations focus on earning revenues from block rewards and transaction fees by mining primarily bitcoin as well as providing hosting services for industrial mining clients. DMG's data analytics and forensic services provide technical expertise software products such as Blockseer Pool, Mine Manager and Walletscore, as well as working with auditors, law firms, and law enforcement organizations. DMG's permissioned blockchain technology is focused on developing enterprise software for the supply chain management of controlled products. DMG's strategy is to become the domain experts across the business verticals it focuses on. DMG's management team includes seasoned crypto experts, forensic & financial professionals and blockchain developers with deep relationships throughout the industry.