Money continues to flow into the cryptocurrency sector this morning, with Hut 8 Mining Corp (TSX: HUT) announcing that it has secured a $77.5 million private placement with institutional investors. The placement is to take place at a price of $5.00 per unit, with the closing of the financing to take place in short order.
Units offered under the offering are to consist of one common share and one half of a common share purchase warrant. Each warrant is valid for a period of two years from the date of issuance, with an exercise price of $6.25 per share. A total of 15.5 million units are to be sold under the offering, with the warrants expected to trade publicly upon the closing of the financing.
Net proceeds are to be used for working capital and general corporate purposes, with the company notably indicating that potential uses also include equipment purchases, infrastructure expansion, and the repayment of debt.
The financing is currently set to close January 13, 2020.
Hut 8 Mining last traded at $8.46 on the TSX.
Information for this briefing was found via Sedar and Hut 8 Mining Corp. 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.
