Hut 8 Mining (TSX: HUT) this morning announced that it is looking to raise significant funds. The company has entered into a bought deal arrangement with that of Canaccord Genuity to raise gross proceeds of $100.0 million.
Under the terms of the financing, Hut 8 will see the sale of 20 million units of the company at a price of $5.00 per unit. Each unit contains one common share and one half of a common share purchase warrant, with each warrant being valid for two years from the date of issuance at an exercise price of $6.25 per share.
A 15% over-allotment option has also been granted to the underwriters.
Proceeds from the financing are to be used to fund the expansion of the firms digital mining, expand power capacity, fund additional mining equipment purchases, fund potential M&A transactions or partnerships, and finally, for general corporate purposes and working capital.
Finally, the company also announced that it expects to begin trading under the ticker symbol “HUT” as of June 15 on the Nasdaq Global Select Market, in connection with its recent approval to uplist. The bought deal financing is also expected to close on this date.
Hut 8 Mining last traded at $6.11 on the TSX.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.