According to the press release, the placement of securities with a coupon rate of 3% will take place during a private sale; with the participation of several buyers, including companies affiliated with NZ Funds, Arca, Senator Investment Group and XN.
The offering is expected to close in early December 2021 after the Toronto Stock Exchange (TSX) approval.
The corporate reorganization
Thus, the funds raised in Galaxy Digital will go to “accelerate growth initiatives across its business lines and for general corporate purposes.”
The company also announced that the board of directors approved the proposed corporate reorganization; in connection with the relocation from Canada to the United States.
Following the reorganization and relocation, the shares of Galaxy Digital Holdings will automatically convert into ordinary Class A shares of the recently registered Delaware holding company Galaxy Digital Inc.
During certain periods, holders of notes will be able to exchange them for shares of the company; both those already in circulation and those that appear following the reorganization. Furthermore, the notes are available only to “qualified institutional buyers”. In particular, they will be general senior unsecured obligations of the issuer.
Recall that previously in November, British mining company Argo Blockchain announced the issue of notes in the United States. Moreover, the firm intends to offer securities with a coupon rate of 8.75% in the amount of $57.5 million.
Earlier in June and September, Argo used its Bitcoin (BTC) as collateral. In order to get two multimillion-dollar loans from Galaxy Digital to help fund the site. Which it hopes to launch by mid-2022. The Securities and Exchange Commission (SEC) filing stated that Argo anticipated more than 90% of its electricity. In order to originate from “stable, renewable power sources at a cost below $0.02/kWh”.