Investors include Slate Path Capital LP, CI
Investments, NZ Funds, and Corriente Advisors, among other
institutional investors who have committed to a $50 million PIPE (Private Investment in Public
Equity)
/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES./
NEW YORK, Oct. 30, 2020 /CNW/ - Galaxy Digital Holdings
Ltd. (TSX: GLXY) ("Galaxy Digital" or the "Company"), which
operates—through Galaxy Digital Holdings LP—businesses across
Trading, Asset Management, Investment Banking and Principal
Investments dedicated to the digital asset, cryptocurrency, and
blockchain technology industry, announced today a private
investment in public equity financing ("PIPE") of $50 million of aggregate gross proceeds.
The PIPE is expected to close in November
2020, subject to customary closing conditions.
![Galaxy Digital Holdings Ltd. logo (CNW Group/Galaxy Digital Holdings Ltd.) Galaxy Digital Holdings Ltd. logo (CNW Group/Galaxy Digital Holdings Ltd.)](https://mma.prnewswire.com/media/1324372/Galaxy_Digital_Holdings_Ltd__Galaxy_Digital_Announces__50_millio.jpg)
"This growth financing from well-known institutional investors
is another validation of Galaxy Digital's strategy of being the
institutional on-ramp for traditional finance into the crypto
markets via differentiated trading, structured financing, asset
management, and investment banking solutions," said Christopher Ferraro, President of Galaxy
Digital. "2020 has witnessed a broad institutional recognition of
blockchain and cryptocurrency use cases and value-add by investors,
corporates, regulators, and governments, and we have experienced a
significant increase in institutional demand for
cryptocurrency-related financial products and services. Galaxy
Digital, as an innovator dedicated to creating and providing
institutional-grade access to the crypto markets and as one of the
few public companies in the space, intends to use this capital to
further fuel our business development initiatives for our clients,
partners, and counterparties."
The PIPE is subject to TSX approval, and all Securities issued
pursuant to the PIPE will be subject to certain selling
restrictions set forth in each investor's definitive investment
agreement.
The Company intends to use the proceeds from the PIPE for
general corporate and working capital purposes across its business
lines, with a particular focus on growing its client financing
business and seeding new asset management-related product
offerings.
Investors, led by Slate Path Capital LP, and including CI
Investments, NZ Funds, and Corriente Advisors, among others, have
committed to invest $50 million
(C$67 million) in the form of a PIPE
at a price per share of C$3.50 for up
to 19,070,000 ordinary shares of the Company (the "Shares") with
each share accompanied by a warrant to purchase 0.25 of an ordinary
share (the warrants and the Shares, the "Securities"). Each warrant
is exercisable into an ordinary share of the Company for a term of
two years from the date of issuance at an exercise price of
C$8.25.
The Securities have not been, and will not be, registered under
the United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), or any U.S. state security laws, and may not be
offered or sold in the United
States without registration under the U.S. Securities Act
and all applicable state securities laws or compliance with
requirements of an applicable exemption therefrom. This press
release shall not constitute an offer to sell or the solicitation
of an offer to buy securities in the
United States, nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
About Galaxy Digital
Galaxy Digital is a diversified financial services and
investment management company in the digital asset, cryptocurrency,
and blockchain technology sector. Galaxy Digital's team has
extensive experience spanning investing, portfolio management,
capital markets, venture capital, asset management, and blockchain
technology. Galaxy Digital currently operates four distinct
business lines, which include: Trading, Asset Management, Principal
Investments, and Investment Banking. Galaxy Digital's CEO and
Founder is Michael Novogratz. The
Company is headquartered in New York
City, with offices in San
Francisco, London,
Tokyo, Hong Kong, the Cayman Islands (registered office) and
New Jersey. Additional information
about the Company's businesses and products is available on
www.galaxydigital.io.
Disclaimers
The TSX has not approved or disapproved of the information
contained herein.
This press release includes certain "forward-looking
information" and "forward-looking statements" (collectively
"forward-looking statements") within the meaning of applicable
Canadian and United States
securities legislation including the United States Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical or current fact, included herein, are
forward-looking statements.
Forward-looking statements are frequently, but not always,
identified by words such as "expects", "anticipates", "believes",
"intends", "estimates", "potential", "possible", and similar
expressions, or statements that events, conditions, or results
"will", "may", "could", or "should" occur or be achieved.
Forward-looking statements in this press release relate to, among
other things, the completion of the PIPE and the use of
proceeds of the PIPE. There can be no assurance that such
statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such
statements. Forward-looking statements reflect the beliefs,
opinions and projections on the date the statements are made and
are based upon a number of assumptions and estimates that, while
considered reasonable by the Company, are inherently subject to
significant business, economic, competitive, political and social
uncertainties and contingencies. The assumptions used in the
preparation of such statements, although considered reasonable at
the time of preparation, may prove to be imprecise. Many factors,
both known and unknown, could cause actual results, performance or
achievements to be materially different from the results,
performance or achievements that are or may be expressed or implied
by such forward-looking statements and the parties have made
assumptions and estimates based on or related to many of these
factors. Such factors include, without limitation, the
failure of the TSX to approve the PIPE, management's discretion to
reallocate the use of proceeds and the risks identified in the
Company's annual information form dated April 8, 2020 and available on SEDAR at
www.sedar.com. Readers should not place undue reliance on the
forward-looking statements and information contained in this
release. Except as required by law, the Company does not assume any
obligation to update the forward-looking statements of beliefs,
opinions, projections, or other factors, should they change, except
as required by law.
All figures are in U.S. Dollars unless otherwise noted
SOURCE Galaxy Digital Holdings Ltd.