Canadian blockchain and fintech company
CryptoGlobal Corp. (TSXV:CPTO, Forum) announced Tuesday a $10 million (CAD) private placement.
The Toronto-based Company has entered into an engagement letter with
Eight Capital and
Haywood Securities Inc. to act as co-lead agents and joint bookrunners. They have agreed to offer for sale up to 8.3 million special warrants of the Company on a "best efforts" private placement basis at a price of $1.20 per special warrant for aggregate gross proceeds of up to $10 million.
CryptoGlobal CEO Rob Segal stated that the Company intends to use the net proceeds of the offering to build out its recently-announced Ontario facilities and drive its growth plans.
Image via CryptoGlobal Corp. release.
On Monday, CryptoGlobal announced it had acquired Toronto blockchain company
BitCity Group, as well as a transformational 100 MW, 10- year Power Purchase Agreement (PPA), with a hosting agreement to build out a 3,700 square metre (40,000 square foot) cryptocurrency mine in Ontario.
Under the terms of the deal, CryptoGlobal will also acquire a 10,000-machine hosting contract. The Company expects to operate at a current price per KW hour of six cents or less. This acquisition consists of $39 million common shares to be paid in four installments and a $1 million cash payment to be paid between closing and June 1st, 2018.
CryptoGlobal mines a diverse portfolio of cryptocurrencies, focusing on Bitcoin (BTC), DASH (DASH), Ether (ETH) and Litecoin (LTC).