Cathedra Bitcoin Announces Closing of C$6,450,000 Non-Brokered Investment from Kingsway Capital and Ten31
Cathedra Bitcoin Inc. (TSX-V: CBIT; OTCQX: CBTTF) (“Cathedra”), a Bitcoin company that develops and operates world-class bitcoin mining infrastructure, is pleased to announce that it has closed its previously announced non-brokered private placement offering (the “Offering”) with Kingsway Capital and Ten31 Venture Capital (“Ten31”) consisting of the sale of 17,916,667 units (“Units”) at a purchase price of C$0.36 per Unit, for gross proceeds of C$6,450,000. The Company has received C$6,429,563 in gross proceeds from the sale of 17,859,898 Units, with the balance of the gross proceeds, being C$20,437 from the sale of 56,769 Units, held in escrow until the TSX Venture Exchange (the “TSXV”) clears the personal information forms of the control persons of Ten31, who, upon the completion of the Offering, and subject to the clearance of the personal information forms by the TSXV, have become insiders of the Company.
Each Unit consists of one common share of the Company (a “Share”) and three-quarters of one (0.75) common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to acquire one (1) common share (a “Warrant Share”) for a period of five (5) years following the closing date. Holders of Warrants are restricted from exercising any number of Warrants that will cause the holder to own such number of Shares that will equal or exceed 10% of the then issued and outstanding Shares. A total of up to 13,437,500 Warrants underly the Units with the following exercise prices per Warrant Share:
- 2,867,500 Warrants at an exercise price of C$0.54 per Warrant Share
- 2,867,500 Warrants at an exercise price of C$0.79 per Warrant Share
- 2,867,500 Warrants at an exercise price of C$1.04 per Warrant Share
- 2,867,500 Warrants at an exercise price of C$1.29 per Warrant Share
- 2,867,500 Warrants at an exercise price of C$1.54 per Warrant Share
The Company intends to use the proceeds from the Offering for general corporate purposes and working capital.
The Units have not been registered under the United States Securities Act of 1933, as amended, or applicable state securities laws, and the Units may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
The Offering is subject to the final approval of the TSXV. The securities issued pursuant to the Offering are subject to a four month and one-day statutory hold period.
Related Party Transaction
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