Digihost Announces Launch of 1.22M Share Buyback Program

This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated March 4, 2022 to its short form base shelf prospectus dated February 23, 2022.

TORONTO, May 19, 2022 (GLOBE NEWSWIRE) -- Digihost Technology Inc. (“Digihost” or the “Company”) (Nasdaq: DGHI; TSXV: DGHI), an innovative U.S. based Bitcoin (“BTC”) mining company, is pleased to announce that it has received approval to undertake, at the Company’s discretion, a normal course issuer bid program to purchase up to 1,219,762 of its subordinate voting shares for cancellation (the “Bid”).

“Digihost is commencing the Bid because it believes that from time to time the market price of its subordinate voting shares may not fully reflect the underlying value of the Company’s business, and that the repurchase of its subordinate voting shares at those times would be in the best interests of its shareholders,” said Michel Amar, Chairman and CEO of Digihost, “Additionally, the Company has recently reduced its outstanding debt by USD $2M and intends to be completely debt free within the next 12 months.”

As of the date hereof, the Company has 27,685,913 subordinate voting shares issued and outstanding. The maximum number of subordinate voting shares that may be purchased by the Company under the Bid represents approximately 5% of the Company’s currently issued and outstanding shares. Shares repurchased under the Bid will be returned to treasury for cancellation. The Company received acceptance from the TSX Venture Exchange (the “TSXV”) to commence the Bid on May 25, 2022. The Bid will terminate on May 25, 2023, or on an earlier date in the event that the maximum number of common shares sought in the Bid has been repurchased. The Company reserves the right to terminate the Bid at any time.

Purchases pursuant to the Bid are expected to be made through the facilities of the TSXV, or such other permitted means (including through alternative trading systems in Canada), at prevailing market prices. The Company has engaged Canaccord Genuity Corp. to act as the broker through which the Bid will be conducted. The Company purchased a total of 164,533 post-consolidation subordinate voting shares during the past 12 months subject to its previous normal course issuer bid at an average purchase price of CAD $4.60 per subordinate voting share. The subordinate voting shares were acquired through the facilities of the TSXV by Canaccord Genuity Corp. The Company completed its most recent financing on March 6, 2022, at CAD $4.40 per unit.