LUXXFOLIO Closes $9.5 Million Bought Deal Financing
NEWS RELEASE
VANCOUVER, BC – December 7, 2021 – LUXXFOLIO Holdings Inc. (the “Company” or “LUXXFOLIO”) (CSE: LUXX) (OTCQB: LUXFF), a vertically-integrated digital asset company, announced today that the Company has closed its previously announced and upsized underwritten public offering of Units of the Company led by PI Financial Corp., which includes Canaccord Genuity Inc. and M Partners Inc. The underwriters exercised their option to purchase 600,000 units of the overallotment option (“Agent Option”), and as a result, the Company issued a total of 13.6 million units at a price of 70 cents per unit and 350,000 additional common share purchase warrants for gross proceeds of $9.534 Million. Each unit consists of one common share and one-half warrant. Each whole warrant is exercisable to acquire one common share at an exercise price of $1.00 until December 7, 2023.
The net proceeds from the offering will be used for working capital requirements as well as for the development, sustaining capital, and maintenance of the Company’s Bitcoin mining operation. This may include, but is not limited to, capital requirements for orders of miners, immersion cooling equipment, power and container infrastructure, and Bitcoin and digital asset reserve management.
Kelly Klatik, Chairman of the Company commented, “This over-subscribed offering includes a broad group of global institutional investors including a strong retail presence in Canada. These funds will allow our management team to be opportunistic on capital projects and provide us with much greater flexibility to HODL our present and future production of Bitcoin and Ether supply as we continue to expand our hash rate in 2022”.
Company Highlights
| Date | Milestones |
| May 2021: | LUXXFOLIO orders 2400 Bitmain S19J Pro miners (NR May 3, 2021); |
| June 2021: | LUXXFOLIO completes acquisition of industrial scale crypto mining operation (NR June 15, 2021); |
| July 2021: | LUXXFOLIO receives and installs 590 Avalon miners (NR July 19, 2021); |
| Aug 2021: | LUXXFOLIO announces expansion to increase capacity from 8MW to 15 MW (NR Aug. 12, 2021); |
| Aug 2021: | LUXXFOLIO reinvests price rebate and installs an additional 100 Bitmain S19J Pro miners (NR Aug. 4, 2021); |
| Sept 2021: | LUXXFOLIO enters into agreement to acquire Ethereum mining operation (NR Sept. 7, 2021); |
| Sept 2021: | LUXXFOLIO enters into swap agreement on 600 miners and receives early delivery on 300 (NR Sept. 20, 2021). |
| Sept 2021: | LUXXFOLIO DTC application approved (NR Sep. 23, 2021) |
| Oct 2021: | LUXXFOLIO accepts early deliver of an additional 75 Miners (total of 675 early deliveries) resulting in a Hash Rate increase of 144% since Sept. 1, 2021 (NR Oct. 14, 2021). |
| Oct 2021: | LUXXFOLIO confirms order for additional 500 Bitmain S19J Pro miners thereby increasing anticipated future hash rate to 360 PH/s (NR Oct. 21, 2021) |
| Nov 2021: | LUXXFOLIO Procures Immersion-Cooling for Crypto Mining Operations with anticipated 25% Increase in Hash Rate (NR Nov. 10, 2021) |
| Nov 2021: | LUXXFOLIO accepts early delivery of an additional 100 Miners (total of 735 early deliveries) resulting in a Hash Rate increase of 162% since Sept. 1 2021 (NR Nov. 16, 2021) |
Estimated Calendar Miner Delivery Dates
- Q4 2021: 190 Miners
- Q1 2022: 600 Miners
- Q2 2022: 1100 Miners
- Q3 2022: 300 Miners
About LUXXFOLIO
LUXXFOLIO Holdings Inc. is a publicly-traded vertically-integrated digital asset company based in Canada. We operate an industrial scale cryptocurrency mining facility in the United States, powered primarily by renewable energy, with a focus on the blockchain ecosystem and generation of digital assets. LUXXFOLIO provides a liquid alternative for exposure to digital assets for the broader capital markets.
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Contact Information:
For more information, please contact:
Dean Linden, Chief Executive Officer
Tel: (604) 398-3837
Email: dlinden@luxxfolio.com
www.luxxfolio.com
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained herein may constitute “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “will be”, “expected”, or variations of such words and phrases or statements that certain actions, events, or results “will” occur. Forward-looking statements regarding the Company, its hosting operations, miners, hash rate, and the Company’s development of its growth strategy are based on the Company’s estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company and its subsidiary to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including capital expenditures and other costs. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
The securities offered have not been and will not be registered under the U.S. Securities Act, as amended, or any state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. Persons absent registration or an applicable exemption from the registration requirements of such laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.