Hut 8 Mining Corp. (TSX: HUT) closed today its previously announced bought deal offering with a syndicate of underwriters led by Canaccord Genuity as sole bookrunner, and Stifel GMP. The company raised total gross proceeds of $115 million from the offering.
In connection with the offering, the company issued a total of 23.0 million units at $5.00 per unit. This includes the 3.0 million units from the full exercise of the 15% over-allotment option.
As previously stated, each unit contains one common share and one-half of a common share purchase warrant. Each whole warrant is exercisable to purchase a common share at $6.25 per share within two years from the issuance date.
According to its filed prospectus, the company intends to use the net proceeds for business growth. Within the announcement of the offering, Hut 8 mentioned that the proceeds are intended for funding the expansion of its digital mining and power capacity, the purchase of additional mining equipment, potential M&A transactions or partnerships, and general corporate purposes and working capital.
The company also starts trading on the Nasdaq today under the ticker symbol “HUT”.
Hut 8 Mining Corp. last traded at $5.26 on the TSX.
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.