Bitcoin Well Secures $5 Million Convertible Debt Financing Commitment
December 06 2021 - 7:00AM
Bitcoin Well (the “Company” or
“
BTCW”), a technology company building and
utilizing products that offer safe and easy ways to buy, sell and
use bitcoin, is pleased to announce that we have entered into a
commitment to conduct a private placement of unsecured convertible
notes (the "Convertible Notes") in the principal amount of up to
CDN$5 million, with AIP Private Capital Inc. (“AIP”). AIP is a
privately-held investment firm with a reputation for its innovative
approach to convertible private debt investing.
“The structure of this transaction affords
Bitcoin Well access to growth capital with ultimate flexibility
around the timing and size of potential draws, which supports our
ability to align funding with our capital needs, and control
interests costs,” said Adam O’Brien, CEO of Bitcoin Well. “AIP
Capital is an ideal partner for us as they focus on emerging growth
companies, primarily in financial services and technology who have
unique assets, and we are pleased to have access to a committed
source of capital given the healthy line-up of opportunities we are
exploring in our pipeline. This is a relationship we will look to
foster and hope that AIP will continue to be a financial partner of
ours as we focus on scalable growth products, such as our online
Visa Debit capability we launched last week.”
It is currently contemplated that the
Convertible Notes may be issued in tranches at the option of the
Company and will be convertible, at the option of the holder, into
common shares of Bitcoin Well (the “Common Shares”) at a conversion
price of CAD$0.32 per share. The Convertible Notes will bear
interest at 12% per annum (the “Original Interest Rate”), payable
in cash semi-annually in arrears. The interest rate will drop to 6%
per annum, payable on the same terms as the Original Interest Rate
upon the occurrence of certain events. The Convertible Notes
financing is subject to the completion of due diligence, definitive
legal documentation, approval of the TSX Venture Exchange as well
as successful negotiation of a third party agreement on fees
related to this transaction. The securities issued will be subject
to a statutory hold period in Canada equal to four months and one
day from the Conversion Date.
Net proceeds from the issuance of the
Convertible Notes will be used to finance growth and future
potential acquisition opportunities, and general working
capital.
Bitcoin Well may pay a finder’s fee in
accordance with the policies of the TSXV Venture Exchange to
certain registrants in connection with the financing.
About Bitcoin Well
Bitcoin Well (TSXV: BTCW) offers convenient,
secure and reliable ways to buy and sell bitcoin through a trusted
Bitcoin ATM network, white glove in-person service and a suite of
web-based transaction services. Based on management’s assessment of
publicly-available data, Bitcoin Well is the first publicly traded
Bitcoin ATM company in the world, with an enterprising
consolidation strategy to deliver accretive and cost-effective
expansion in North America and globally. As leaders of the
longest-running, founder-led Bitcoin ATM company in Canada,
management of Bitcoin Well brings deep operational capabilities
that span the entire value chain along with access to proprietary,
cutting-edge software development that supports further expansion.
Bitcoin Well is on a mission to shift the relationship that society
has with money by offering an ecosystem of products and services
that make Bitcoin accessible and understood. This ecosystem
includes non-custodial financial offerings (both
in-person and online); technology development, including SaaS and
internal technology developments through Ghostlab, the technology
arm of the business; and educational resources designed with the
needs of both the customers, and the industry, in mind.
Sign up for our newsletter and follow us on
LinkedIn, Twitter, YouTube, Facebook, and Instagram to keep up to
date with our business. For OTC location information visit
bitcoinwell.com/appointment/.
Contact Information For
investor information, please contact:
Bitcoin Well10142 82 Avenue NWEdmonton, AB T6E
1Z4bitcoinwell.com
Adam O’Brien, President & CEO or
Dave Bradley, Chief Revenue OfficerTel: 1 888 711
3866 ir@bitcoinwell.com
Myles Dougan, Director of Investor
RelationsTel: 587 982 2769m.dougan@bitcoinwell.com
For media queries and further information, please contact:
Karen Smola, Director of MarketingTel: 587 735
1570k.smola@bitcoinwell.com
Reader Advisory / Forward-Looking
Statements
Statements in this press release regarding Bitcoin Well which
are not historical facts are “forward-looking statements” that
involve risks and uncertainties, such as the timing of expansion
plans and activities, allocation of the proceeds from the private
placement as well as various business objectives. Such information
can generally be identified by the use of forwarding-looking
wording such as “may”, “expect”, “estimate”, “anticipate”,
“intend”, “believe” and “continue” or the negative thereof or
similar variations. Since forward-looking statements address future
events and conditions, by their very nature, they involve inherent
risks and uncertainties such as the risk that the closing may not
occur for any reason. Actual results in each case could differ
materially from those currently anticipated in such statements due
to factors such as: (i) adverse market conditions and (ii) the need
for additional financing. Except as required by law, Bitcoin Well
does not intend to update any changes to such statements.
Bitcoin Well (TSXV:BTCW)
Historical Stock Chart
From Jun 2024 to Jul 2024
Bitcoin Well (TSXV:BTCW)
Historical Stock Chart
From Jul 2023 to Jul 2024