Digihost Announces Closing of CAD$25 Million Brokered Private Placement With Institutional Investors

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, March 17, 2021 (GLOBE NEWSWIRE) -- Digihost Technology Inc. (“Digihost” or the “Company”) (TSXV: DGHI; OTCQB: HSSHF) is pleased to announce that the Company has closed its previously announced private placement of equity securities (the “Offering”). The offering was for gross proceeds of CAD$25 million in a private placement of its equity securities and consisted of the sale of 9,363,296 common shares of the Company (“Shares”) and warrants to purchase 9,363,296 common shares (“Warrants”), at a purchase price of CAD$2.67 per Share and associated Warrant. The Warrants have an exercise price of CAD$3.14 per Share and exercise period of three years from the issuance date.

The net proceeds of the private placement will be used by the Company primarily to acquire additional Bitcoin miners, infrastructure expansion, further reduce energy costs and for working capital purposes.

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

H.C. Wainwright & Co. received (i) a cash commission equal to 8.0% of the gross proceeds of the Offering and (ii) 749,064 non-transferable broker warrants (the “Broker Warrants”). Each Broker Warrant will entitle the holder to purchase one common share at an exercise price of CAD$3.3375 at any time for a period of three years from the issuance date.

The securities issued under the Offering are subject to customary resale restrictions in the United States with no resale restrictions in Canada. No securities were offered or sold to Canadian residents in connection with the private placement.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This news release does not constitute an offer of securities for sale in the United States. 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 absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.