CLOSING OF CAD$10 MILLION PRIVATE PLACEMENT WITH INSTITUTION Toronto, Ontario--(Newsfile Corp. - March 24, 2021) - Cypherpunk Holdings Inc. (CSE: HODL) ("Cypherpunk" or the "Company"), a sector leader for privacy-technology investments, is pleased to announce that has completed its previously announced private placement (the "Private Placement") of its common shares ("Common Shares") and common share purchase warrants ("Warrants") to certain institutional investors for aggregate gross proceeds of approximately CAD$10 million. Pursuant to the Private Placement, the Company issued an aggregate of 29,411,766 Common Shares and 14,705,883 Warrants at a purchase price of CAD$0.34 per each Common Share and associated one-half of one Warrant. Each whole Warrant entitles the holder to purchase one Common Share at an exercise price of CAD$0.395 per Common Share for a period of three years and one day following the issuance date.
H.C. Wainwright & Co. acted as the exclusive placement agent for the Private Placement.
The net proceeds of the Private Placement are expected to be used by the Company to make investments in accordance with its investment strategy, including possible investments in cryptocurrencies and companies, technologies and protocols that enhance or protect privacy often in the blockchain ecosystem, and for general working capital purposes.
On completion of the Private Placement, H.C. Wainwright & Co. received (i) a cash commission equal to 7.0% of the gross proceeds of the Private Placement, and (ii) 2,058,824 non-transferable common share purchase warrants (the "Broker Warrants"). Each Broker Warrant entitles the holder to purchase one Common Share at an exercise price of CAD$0.425 for a period of three years and one day following the issuance date.
No securities were offered or sold to Canadian residents in connection with the Private Placement. 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.
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 and shall not constitute an offer of securities for sale in the United States. The securities 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 Cypherpunk Holdings Inc.
Cypherpunk is a company set-up to invest in companies, technologies and protocols, which enhance or protect privacy. Its strategy is to make targeted investments in businesses and assets with strong privacy, often within the blockchain ecosystem, including select cryptocurrencies. Current equity investments include Samourai Wallet, Wasabi Wallet, Chia, NGRAVE, and Hydro 66.