Bitzero raises $25M via private placement of special warrants

Bitzero Holdings Inc. (NASDAQ: AIBZ) (CSE: AIBZ.U) announced a private placement with institutional investors for aggregate gross proceeds of approximately $25 million.

The offering consists of 5,828,342 special warrants priced at $4.25 each. Each special warrant will automatically convert, at no additional cost, into one common share and one common share purchase warrant. The conversion will occur on the earlier of the day after a qualifying prospectus supplement is filed or four months and one day after closing.

Each resulting warrant will be exercisable immediately upon issuance, entitling the holder to purchase one common share at $5.00 for a period of five years from the date of issuance of the special warrants.

Bitzero said it intends to use the net proceeds for repayment of outstanding debt, continued development of its products and services, potential future acquisitions, working capital, and general corporate purposes.

Clear Street LLC is serving as the exclusive placement agent for the offering. The company has also agreed to enter into a registration rights agreement with investors, requiring it to file a resale registration statement with the U.S. Securities and Exchange Commission.

The securities are being offered under Section 4(a)(2) of the U.S. Securities Act of 1933 and Rule 506(b) of Regulation D, and have not been registered under U.S. federal or state securities laws.

Bitzero operates four data center locations across North America and the Nordic region, according to the company's press release.

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