Digihost Technologies (TSXV: DGHI) doesn’t seem to know whether its coming or going. The firm this morning announced it has been approved to conduct a share buyback program, two months after it announced an at-the-market financing.
The normal course issuer bid will see the company permitted to repurchase up to 1.22 million of its subordinate voting shares. The figure represents roughly 5% of the firms 27.7 million outstanding shares. Shares are to be repurchased on the TSX Venture exchange under the program via Canaccord Genuity.
Under a previously outstanding share buyback program, the company repurchased 164,533 subordinate voting shares, at an average price of $4.60 per share.
While the program in theory sounds excellent, it pales in comparison to a previously announced US$250 million at the market financing. Announced in early March, that program reportedly has not seen any funds raised as of yet, with the firm pledging to not purchase shares under the program until the buyback program is terminated.
The buyback program also follows a financing conducted in March to the tune of $13.3 million. That financing saw 3.0 million units issued at $4.40 per each – more than double the amount of shares planned to be repurchased under the current program.
Digihost Technology last traded at $1.83 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
