Mr.Christopher Ferraro reports
GALAXY DIGITAL ANNOUNCES $50 MILLION IN PRIMARY CAPITAL FINANCING TO DRIVE FURTHER GROWTH ACROSS INSTITUTIONAL SERVICES BUSINESSES
Galaxy Digital Holdings Ltd.has arranged a private investment in public equity financing (PIPE) of $50-million of aggregate gross proceeds.The PIPE is expected to close in November 2020, subject to customary closing conditions.
“This growth financing from well-known institutional investors is another validation of Galaxy Digital’s strategy of being the institutional on-ramp for traditional finance into the crypto markets via differentiated trading, structured financing, asset management, and investment banking solutions,” said Christopher Ferraro, President of Galaxy Digital.”2020 has witnessed a broad institutional recognition of blockchain and cryptocurrency use cases and value-add by investors, corporates, regulators, and governments, and we have experienced a significant increase in institutional demand for cryptocurrency-related financial products and services.
Galaxy Digital, as an innovator dedicated to creating and providing institutional-grade access to the crypto markets and as one of the few public companies in the space, intends to use this capital to further fuel our business development initiatives for our clients, partners, and counterparties.”
The PIPE is subject to TSX approval, and all Securities issued pursuant to the PIPE will be subject to certain selling restrictions set forth in each investor’s definitive investment agreement.
The Company intends to use the proceeds from the PIPE for general corporate and working capital purposes across its business lines, with a particular focus on growing its client financing business and seeding new asset management-related product offerings.
Investors, led by Slate Path Capital LP, and including CI Investments, NZ Funds, and Corriente Advisors, among others, have committed to invest $50 million (C$67 million) in the form of a PIPE at a price per share of C$3.50 for up to 19,070,000 ordinary shares of the Company (the “Shares”) with each share accompanied by a warrant to purchase 0.25 of an ordinary share (the warrants and the Shares, the “Securities”).
Each warrant is exercisable into an ordinary share of the Company for a term of two years from the date of issuance at an exercise price of C$8.25.
The Securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S.Securities Act”), or any U.S.state security laws, and may not be offered or sold in the United States without registration under the U.S.Securities Act and all applicable state securities laws or compliance with requirements of an applicable exemption therefrom.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Galaxy Digital
Galaxy Digital is a diversified financial services and investment management company in the digital asset, cryptocurrency, and blockchain technology sector.Galaxy Digital’s team has extensive experience spanning investing, portfolio management, capital markets, venture capital, asset management, and blockchain technology.Galaxy Digital currently operates four distinct business lines, which include: Trading, Asset Management, Principal Investments, and Investment Banking.Galaxy Digital’s CEO and Founder is Michael Novogratz.The Company is headquartered in New York City, with offices in San Francisco, London, Tokyo, Hong Kong, the Cayman Islands (registered office) and New Jersey.Additional information about the Company’s businesses and products is available on www.galaxydigital.io.
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