Digihost Announces Launch of 1.22M Share Buyback Program
May 19 2022 - 6:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (Nasdaq: DGHI; TSXV: DGHI), an
innovative U.S. based Bitcoin (“
BTC”) mining
company, is pleased to announce that it has received approval to
undertake, at the Company’s discretion, a normal course issuer bid
program to purchase up to 1,219,762 of its subordinate voting
shares for cancellation (the “
Bid”).
“Digihost is commencing the Bid because it
believes that from time to time the market price of its subordinate
voting shares may not fully reflect the underlying value of the
Company’s business, and that the repurchase of its subordinate
voting shares at those times would be in the best interests of its
shareholders,” said Michel Amar, Chairman and CEO of Digihost,
“Additionally, the Company has recently reduced its outstanding
debt by USD $2M and intends to be completely debt free within the
next 12 months.”
As of the date hereof, the Company has
27,685,913 subordinate voting shares issued and outstanding. The
maximum number of subordinate voting shares that may be purchased
by the Company under the Bid represents approximately 5% of the
Company’s currently issued and outstanding shares. Shares
repurchased under the Bid will be returned to treasury for
cancellation. The Company received acceptance from the TSX Venture
Exchange (the “TSXV”) to commence the Bid on May
25, 2022. The Bid will terminate on May 25, 2023, or on an earlier
date in the event that the maximum number of common shares sought
in the Bid has been repurchased. The Company reserves the right to
terminate the Bid at any time.
Purchases pursuant to the Bid are expected to be
made through the facilities of the TSXV, or such other permitted
means (including through alternative trading systems in Canada), at
prevailing market prices. The Company has engaged Canaccord Genuity
Corp. to act as the broker through which the Bid will be conducted.
The Company purchased a total of 164,533 post-consolidation
subordinate voting shares during the past 12 months subject to its
previous normal course issuer bid at an average purchase price of
CAD $4.60 per subordinate voting share. The subordinate voting
shares were acquired through the facilities of the TSXV by
Canaccord Genuity Corp. The Company completed its most recent
financing on March 6, 2022, at CAD $4.40 per unit.
At-the-Market Financing
Update
On March 4, 2022, the Company entered into an
offering agreement with H.C. Wainwright & Co., LLC as agent,
pursuant to which the Company established an at-the-market equity
program (the “ATM Program”). From the commencement
of the ATM Program through to the date hereof, the Company has not
issued any securities pursuant to the ATM Program. Further, the
Company will not issue any securities pursuant to the ATM Program
during the period from the commencement of the Bid on May 25, 2022
until the Bid is terminated.
About Digihost
Digihost is a growth-oriented blockchain
technology company primarily focused on BTC mining. Through its
self-mining operations and joint venture agreements, the Company is
currently hashing at a rate of approximately 450 PH/s.
All hosting fees and joint venture profit
sharing are treated as operating expenses in the Company’s
consolidated financial statements.
For further information, please contact:
Digihost Technology
Inc.www.digihost.caMichel Amar, Chief Executive
Officer T: 1-818-280-9758Email: michel@digihostblockchain.com
Cautionary StatementTrading in the securities
of the Company should be considered highly speculative. No stock
exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein. Neither
the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this news
release.
Forward-Looking StatementsExcept for the
statements of historical fact, this news release contains
“forward-looking information” and “forward-looking statements”
(collectively, “forward-looking information”) that are based on
expectations, estimates and projections as at the date of this news
release and are covered by safe harbors under Canadian and United
States securities laws. Forward-looking information in this news
release includes any statements regarding the Bid, including
whether any repurchases will be made thereunder and the timing and
amount thereof, information about potential further improvements to
profitability and efficiency across mining operations including, as
a result of the Company’s expansion efforts, acquisitions of
equipment and infrastructure, potential for the Company’s long-term
growth, and the business goals and objectives of the Company.
Factors that could cause actual results to differ materially from
those described in such forward-looking information include, but
are not limited to: capital market conditions in general, future
capital needs and uncertainty of additional financing, including
the Company’s ability to utilize the Company’s at-the-market
offering program (the “ATM Program”) and the prices at which the
Company may sell securities in the ATM Program; share dilution
resulting from the ATM Program and from other equity issuances; the
ability to obtain regulatory approval for and complete acquisitions
of equipment and infrastructure on the terms as announced or at
all; the ability to successfully integrate the acquisitions of
equipment and infrastructure on an economic basis or at all; risks
relating to the strategy of maintaining and increasing Bitcoin
holdings and the impact of depreciating Bitcoin prices on working
capital; regulatory and other unanticipated issues that prohibit us
from declaring or paying dividends to our shareholders that are
payable in Bitcoin; continued effects of the COVID19 pandemic may
have a material adverse effect on the Company’s performance as
supply chains are disrupted and prevent the Company from operating
its assets; approval of the Public Service Commission or other
regulatory or board approvals being received on a timely basis, or
at all; the acquisition of North Tonawanda, New York facilities
closing on timely basis, or at all; ability to access additional
power from the local power grid; a decrease in cryptocurrency
pricing, volume of transaction activity or generally, the
profitability of cryptocurrency mining; further improvements to
profitability and efficiency may not be realized; the digital
currency market; the Company’s ability to successfully mine digital
currency on the cloud; the Company may not be able to profitably
liquidate its current digital currency inventory, or at all; a
decline in digital currency prices may have a significant negative
impact on the Company’s operations; the volatility of digital
currency prices; and other related risks as more fully set out in
the Annual Information Form of the Company and other documents
disclosed under the Company’s filings at www.sedar.com. The
forward-looking information in this news release reflects the
current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about: the current
profitability in mining cryptocurrency (including pricing and
volume of current transaction activity); profitable use of the
Company’s assets going forward; the Company’s ability to profitably
liquidate its digital currency inventory as required; historical
prices of digital currencies and the ability of the Company to mine
digital currencies on the cloud will be consistent with historical
prices; the ability to maintain reliable and economical sources of
power to run its cryptocurrency mining assets; the negative impact
of regulatory changes in the energy regimes in the jurisdictions in
which the Company operates; the ability to adhere to Digihost’s
dividend policy and the timing and quantum of dividends based on,
among other things, the Company’s operating results, cash flow and
financial condition, Digihost’s current and anticipated capital
requirements, and general business conditions; and there will be no
regulation or law that will prevent the Company from operating its
business. The Company has also assumed that no significant events
occur outside of the Company's normal course of business. Although
the Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information
due to the inherent uncertainties therein.
Digihost Technology (TSXV:DGHI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Digihost Technology (TSXV:DGHI)
Historical Stock Chart
From Sep 2023 to Sep 2024