thecoinrepublic.com
On August 17, Hut 8 Mining Corp. announced that it has signed an equity distribution agreement with Stifel and Canaccord Genuity. In accordance to which the company has set up an ATM or at-the-market equity program.
To the unfamiliar, Hut 8 is the largest innovation-focused digital asset miners in North America. A team consisting of business-building technologists, who solely believe in blockchain, Bitcoin and Web 3.0.Thus, bringing the nascent and traditional high performance computing worlds together.
Where Will the Net Proceeds Go ?
In accordance with the ATM Program, the company could sell a number of shares of the company or “Common Shares” and in return, would gain aggregate gross proceeds to the Company of around $200,000,000. If the sales of Common Shares are made by the Agents, they will be through “at-the-market” issuances and that are without limitation. The sales are done on the Nasdaq Stock Market in the United States at the market price at the time of each sale. The ATM Program on any marketplace in Canada including the Toronto Stock Exchange, will not offer or sell Common Shares. Any of the parties has the right to terminate the ATM Program, at any time.
The net proceeds of the ATM Program will be used by the company for general corporate purposes. It also includes funding working capital requirements or ongoing operations. The net proceeds could further be utilized for purposes such as repaying indebtedness outstanding from time-to-time, potential acquisitions and discretionary capital programs. It is also important to note that the prices may vary between buyers and during the period of distribution. It is due to the fact that the Common Shares are going to be distributed on market prices at the time of sales. The trading and volume of sales will be decided at the sole discretion of the company and as per the terms of the ATM Agreement.