Digihost To Conduct $13.3 Million Private Placement After Announcing US$250 At The Market Offering

Digihost Technology (TSXV: DGHI) apparently has a disdain for its shareholders. After announcing on Friday an at-the-market offering nearly three times the size of its entire valuation, the firm on Sunday evening announced that it would also be conducting a private placement with a single investor, leading to further dilution.

The financing will see the company raise $13.3 million in gross proceeds, at a price of $4.40 per unit. The price represents a premium over the current pricing of the firms equity in public markets, comparable with levels seen prior to announcing the large ATM financing. Each unit contains one common share and one common share purchase warrant, with warrants also priced at $4.40 per share and valid for a period of three and a half years. A total of 3.0 million units are to be issued.

Proceeds from the financing are to be used for the purchase of additional bitcoin miners, as well as to expand related infrastructure and for general working capital purposes.

The financing is being fulfilled by HC Wainwright, whom has also agreed to cancel 1.2 million warrants priced at $9.42, as well as 1.8 million warrants priced at $7.11 as part of the offering.

The offering is expected to close March 9.

Digihost Technology last traded at $3.97 on the TSX Venture, declining 17.8% in Friday’s session.

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.

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