Bitfarms Announces Closing of CAD$40.0 Million Private Placement with U.S. Institutional Investors

TORONTO and BROSSARD, Québec, Feb. 10, 2021 (GLOBE NEWSWIRE) -- Bitfarms Ltd. (“Bitfarms”, or the “Company”) (TSXV:BITF) (U.S.:OTC:BFARF), one of the largest and most productive publicly listed bitcoin mining operations in the world, is pleased to announce that it has closed its previously announced private placement of equity securities (the “Offering”). The Offering was for gross proceeds of approximately CAD$40 million and consisted of the sale of 11,560,695 common shares, along with warrants to purchase an aggregate of up to 11,560,695 common shares, at a purchase price of CAD$3.46 per common share and associated warrant. The warrants have an exercise price of USD$3.01 per common share and exercise period of three and one-half years (through August 12, 2024). The funds were raised via a fully subscribed private placement of units among U.S. institutional investors.

H.C. Wainwright & Co. acted as the exclusive placement agent for the Offering.

The net proceeds of the Offering will be used by the Company principally to acquire additional miners, expand infrastructure, and improve its working capital position.

H.C. Wainwright & Co. received (i) a cash commission equal to 8.0% of the gross proceeds of the Offering and (ii) 924,856 non-transferable broker warrants (the “Broker Warrants”). Each Broker Warrant will entitle the holder to purchase one common share at an exercise price of USD$3.39 at any time on or before August 12, 2024.

The securities issued under the Offering are subject to customary resale restrictions in the United States with no resale restrictions in Canada.

Notes
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States except pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933 and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.