TeraWulf to Become Publicly Traded After Buying Ikonics
June 25 2021 - 9:27AM
Dow Jones News
By Chris Wack
TeraWulf Inc. said it expects to become a Nasdaq-listed company
through a business combination with Ikonics Corp.
The companies will combine under a new holding company, which
would change its name to TeraWulf Inc. and is expected to be listed
on The Nasdaq Stock Market LLC under the trading symbol WULF.
TeraWulf is bitcoin mining company looking to generate
environmentally sustainable bitcoin at an industrial scale in the
U.S. using more than 90% zero-carbon energy. The company has 60,000
miners on order, and expects to have 50 megawatts of mining
capacity online this year, and expects to have 800 MW mining
capacity deployed by 2025.
Under the terms of the agreement, each outstanding share of
Ikonics common stock will receive $5 in cash, one contingent value
right, and one share of the combined company's common stock.
Through the CVRs, which will not be publicly traded, the Ikonics
shareholders will be entitled to received 95% of the proceeds from
any sale of its legacy business completed during the 18 months
following the closing of the business combination.
The shares of the combined company's common stock to be received
by the Ikonics shareholders will collectively represent 2% of the
combined company's pro forma common equity ownership. As of March
31, Ikonics had a net book value of $11.6 million, cash of $4.4
million and working capital of $4.1 million.
Following consummation of the transaction, the legacy business
of Ikonics would be operated consistent with past practices but
would be positioned for sale on terms that are acceptable to the
board of directors of the combined company.
The transaction is expected to close in the second half of
2021.
The combined company will be led by Paul Prager as chairman and
chief executive. Upon completion of the transaction, all members of
the Ikonics board of directors will resign and be replaced by
persons to be designated by TeraWulf.
Ikonics shares were halted at $11.30 in premarket trading.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
June 25, 2021 09:18 ET (13:18 GMT)
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