Stronghold Enters Into $15.4M Private Placement To Sell 2.3M Shares Of Class A Common Stock And Share Equivalents, In Each Case At A Price Of At A Price Of $6.71/Share Equivalent
Portfolio Pulse from Benzinga Newsdesk
Stronghold Digital Mining, Inc. (NASDAQ:SDIG) has entered into a private placement agreement to sell 2.3 million shares of Class A Common Stock at $6.71 per share to an institutional investor, raising $15.4 million. The deal includes warrants to purchase an additional 2.3 million shares at $7.00 per share, exercisable six months post-issuance. The proceeds will fund growth and efficiency improvements in the miner fleet, a carbon capture initiative, and enhance working capital and general corporate purposes. Warrant exercise prices from previous issuances in April and September 2023 have been adjusted to $7.00 per share.
December 22, 2023 | 1:37 pm
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Stronghold Digital Mining's private placement of 2.3M shares at $6.71 each raises $15.4M. Proceeds will enhance miner fleet, carbon capture, and working capital. Warrants are also issued, with an exercise price of $7.00, and previous warrants' prices are adjusted to $7.00.
The private placement is likely to have a positive short-term impact on SDIG's stock price as it provides the company with significant capital to invest in growth initiatives, which could improve investor sentiment. The issuance of warrants could potentially dilute existing shares but also indicates investor confidence in the company's future. The adjustment of previous warrants' exercise prices to $7.00 aligns with the new warrants, which may be viewed positively by investors as it simplifies the capital structure.
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