Bitzero Holdings raises 25 million USD, uses 22.375 million USD for loan repayment

Bitzero Holdings plans to allocate 22.375 million USD of its 25 million USD private placement to repay secured-loan principal by approximately Aug. 6. This repayment will consume 89.5% of the total proceeds. The company closed the placement on July 30, selling 5,828,342 special warrants at 4.25 USD each, raising about 24.77 million USD. Bitzero has not disclosed the final net proceeds or the total payoff amount for its secured debt, making it impossible to calculate the remaining cash after repayment. A notice issued on July 31 initiated a five-business-day countdown to the payment date. As of Aug. 4, the payment had not yet occurred, and the collateral remained under liens. Each special warrant will convert into one common share and one purchase warrant, with automatic exercise occurring either at a specified event or four months and one day after the closing. This could add 5,828,342 common shares and the same number of purchase warrants, each exercisable for one share at 5 USD over five years. The total new shares from full exercise of the resulting warrants could reach 11,656,684, representing 21.6% of the 54,035,007 shares outstanding as of Aug. 4. Confirmation of payment and lien releases is expected around Aug. 6.

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