Bitfarms Ltd (OTCMKTS:BFARF) is trading down in the morning session on Friday.
Market Action
As of 10:54, BFARF stock fell 3.84% to $4.25. Total volume for the session stood at 332K shares, compared to its average volume of 1.57 million shares. The stock opened at $4.61 and moved within a wide range of $4.1700 – 4.7050.
BFARF Issues News
Bitfarms Announces Closing of CAD$75.0 Million Private Placement with U.S. Institutional Investors
- announce that it has closed its previously announced private placement of equity securities (the “Offering”). The Offering was for gross proceeds of approximately CAD$75 million and consisted of the sale of 14,150,944 common shares, along with warrants to purchase an aggregate of up to 10,613,208 common shares, at a purchase price of CAD$5.30 per common share and associated warrant.
- The warrants have an exercise price of USD$4.87 per common share and exercise period of three years (through May 20, 2024). The funds were raised via a fully subscribed private placement of equity securities among U.S. institutional investors.
- H.C. Wainwright & Co. acted as the exclusive placement agent for the Offering.
- The net proceeds of the Offering will be used by the Company principally to acquire additional miners, expand infrastructure and improve its working capital position, in support of its plans to increase its hashrate in 2021 to 3.0 EH/s, then grow to 8.0 EH/s in 2022.
- H.C. Wainwright & Co. received (i) a cash commission equal to 8.0% of the gross proceeds of the Offering and (ii) 1,132,076 non-transferable broker warrants (the “Broker Warrants”). Each Broker Warrant will entitle the holder to purchase common shares at an exercise price of USD$5.49 per common share at any time on or before May 20, 2024. The securities issued under the Offering are subject to customary resale restrictions in the United States with no resale restrictions in Canada.
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