Bitzero closes $25M private placement via special warrants

Bitzero Holdings Inc. (NASDAQ: AIBZ) (CSE: AIBZ.U) has closed a private placement of 5,828,342 special warrants at US$4.25 each, raising approximately US$25 million in gross proceeds, according to a company statement.

The company said it plans to use the net proceeds to repay outstanding debt, continue development of its products and services, pursue potential acquisitions, and fund working capital and general corporate purposes.

Each special warrant will automatically convert into one common share and one common share purchase warrant, with no additional payment required. The conversion will occur on the earlier of the date a qualifying prospectus is filed or accepted by Canadian securities regulators, or four months and one day after closing. Each resulting warrant will be exercisable immediately at US$5.00 per common share for five years from the date of issuance.

Bitzero also entered into a registration rights agreement with investors, committing to file a resale registration statement with the U.S. Securities and Exchange Commission covering the common shares issuable upon exercise of the special warrants and warrants.

Clear Street LLC served as exclusive placement agent. Greenberg Traurig, LLP and Garfinkle Biderman LLP acted as legal counsel to Bitzero, while Troutman Pepper Locke LLP and Miller Thomson LLP represented Clear Street LLC.

The securities were offered under Section 4(a)(2) of the U.S. Securities Act of 1933 and have not been registered under U.S. federal or state securities laws.

Bitzero operates data center locations in North America and the Nordic region.

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