Neptune Digital Assets Announces CDN$40 Million Private Placement Offering With Institutional Investors
VANCOUVER, British Columbia, April 13, 2021 (GLOBE NEWSWIRE) -- Neptune Digital Assets Corp. (TSX-V:NDA) (OTC:NPPTF) (FSE:1NW) (the “Company”) is pleased to announce that it has entered into a securities purchase agreement for a private placement of units of the Company (the
“Units”), each comprised of one common share (a “Common Share”) and one-half of one warrant to purchase a Common Share (each whole warrant, a “Warrant”) to institutional investors at a purchase
price of Cdn$1.35 per Unit for aggregate gross proceeds to the Company of approximately Cdn$40 million (the “Private Placement”). Each whole Warrant will entitle the holder thereof to purchase one
Common Share at an exercise price of Cdn$1.75 per Common Share at any time prior to the three-year anniversary of the issuance date of the Warrants.
H.C. Wainwright & Co. is acting as the exclusive placement agent for the Private Placement in the United States.
The Common Shares and Warrants to be issued under the Private Placement will be qualified by way of a prospectus supplement under the Company’s base shelf prospectus dated April 12, 2021 (the “Prospectus Supplement”) which will be filed in the Province of British Columbia. In the United States, the Common Shares, Warrants and the shares issuable upon the exercise of the Warrants will be offered on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and certain other jurisdictions in accordance with applicable securities laws.
The net proceeds of the Private Placement are expected to be used by the Company for the development of a 5MW clean tech Bitcoin mining facility, purchase of ASIC Bitcoin mining machines, Proof-of-Stake investments and general and administrative expenses. Details as to the specific allocation of the proceeds will be disclosed in the Prospectus Supplement.
The closing of the Private Placement is expected to occur on or about April 16, 2021. The Company has applied to list the Common Shares offered and sold in the Private Placement and the Common Shares issuable upon the exercise of the Warrants on the TSX Venture Exchange (the “TSXV”). The Private Placement is subject to the satisfaction of certain customary closing conditions, including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals (including, for certainty, the acceptance of the TSXV).