Neptune Digital Assets Corp has closed its previously announced sale to US and foreign institutional investors of its common shares and warrants to purchase Common Shares for aggregate gross proceeds to the Company of approximately Cdn$40 million.
Pursuant to the Private Placement, the Company issued 29,630,002 Common Shares and Warrants to purchase up to 14,815,001 Common Shares at a purchase price of Cdn$1.35 per Common Share and associated half Warrant.
Each whole Warrant entitles the holder thereof to purchase one Common Share at an exercise price of Cdn$1.75 per Common Share at any time on or before April 16, 2024 (totaling another approximately Cdn$26 million once exercised), the company said.
“We are very pleased to complete this equity financing well above our 20-day volume weighted average price. We have held back from doing any major financing since 2018 in order to minimize dilution to our shareholders,” said Neptune Digital Assets Corp President and CEO Cale Moodie.
“This equity financing marks an important milestone in the growth trajectory for Neptune and this capital will enable Neptune to rapidly advance its business plan, substantially grow our earnings and pursue a variety of new and exciting projects in both proof-of-stake and proof-of-work mining,” he added.
The Company intends to use the net proceeds of the Private Placement to fund the development of a 5MW clean tech Bitcoin mining facility to complete one or more purchases of Bitcoin mining servers over the course of 2021, to invest in proof-of-stake mining and for working capital and general corporate purposes.
