UPDATE: On March 28, 2024, CleanSpark Amended Its ATM Offering Agreement Allowing It To Issue Up To $800M Of Common Stock Or The Number Of Authorized But Unissued Shares, With The Amended Agreement Not Obligating The Co To Sell Any Shares Nor The Agent To Purchase Any, Except As Separately Agreed
Portfolio Pulse from Benzinga Newsdesk
CleanSpark amended its ATM offering agreement on March 28, 2024, enabling it to issue up to $800M of common stock or the number of authorized but unissued shares. The amendment does not obligate CleanSpark to sell any shares nor the agent to purchase any, except as separately agreed, according to an SEC filing.
April 01, 2024 | 3:44 pm
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NEUTRAL IMPACT
CleanSpark's amended ATM offering agreement allows for the issuance of up to $800M in common stock, with no obligation to sell or purchase unless separately agreed.
The amendment to CleanSpark's ATM offering agreement provides the company with significant financial flexibility by allowing it to issue up to $800M in common stock. However, since there is no obligation to sell any shares nor for the agent to purchase any except as separately agreed, the immediate impact on the stock price is likely neutral. The potential for dilution exists if CleanSpark decides to issue a significant amount of new stock, but the lack of obligation to do so mitigates immediate concerns.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100