CAD $13.3 M PP Priced at Premium with Institutional Investor TORONTO, March 06, 2022 (GLOBE NEWSWIRE) -- Digihost Technology Inc. (“Digihost” or the “Company”) (TSXV: DGHI; Nasdaq: DGHI) is pleased to announce that the Company has entered into a subscription agreement with a single institutional investor, for gross proceeds of approximately CAD$13.3 million in a private placement of its equity securities, comprised of 3,029,748 common shares of the Company (“Shares”) (or common share equivalents) and warrants to purchase up to 3,029,748 common shares (“Warrants”), at a purchase price of CAD$4.40 per Share and associated Warrant, representing a premium of more than 10% over the previous closing price of CAD$3.97 on the TSX Venture Exchange on Friday March 4, 2022. The Warrants have an exercise price of CAD$6.25 per Share and exercise period of three and one-half years from the issuance date. The net proceeds of the private placement will be used by the Company primarily to acquire additional Bitcoin miners, expand infrastructure and for general working capital purposes.
In connection with the private placement, the investor has agreed to cancel existing warrants to purchase up to 1,248,440 common shares of the Company at an exercise price of CAD$9.42 per share issued in March 2021 expiring on March 18, 2024, and the existing warrants to purchase up to 1,781,308 common shares of the Company at an exercise price of CAD$7.11 issued in April 2021 expiring on April 9, 2025.
H.C. Wainwright & Co. is acting as the exclusive placement agent for the private placement.
The private placement is expected to close on or about March 9, 2022, subject to satisfaction of customary closing conditions, including the approval of the TSX Venture Exchange.
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 shall 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. Through its self-mining operations and joint venture agreements, the Company is currently hashing at a rate of approximately 415PH.
For further information, please contact:
Digihost Technology Inc.
www.digihost.ca
Michel Amar, Chief Executive Officer
Email: michel@digihostblockchain.com