Digital Commodities Announces Bitcoin Purchase Under VanCrypto Facility
Under the terms of this transaction, Digital Commodities will acquire Bitcoin in exchange for 714,285 units of the Company at a deemed price of $0.07 per unit. Each unit will consist of one common share of the Company and one common share purchase warrant, with each warrant exercisable into one common share at a price of $0.10 for a period of two years from the date of issuance.
The purchase and sale are expected to close in approximately five business days in accordance with Canadian Securities Exchange ("CSE") policies. The number of Bitcoin acquired will be determined at closing based on the prevailing market price of Bitcoin at that time. The securities issued in connection with the transaction will be subject to a statutory hold period of four months and one day from the date of issuance, in accordance with applicable securities laws, as well as a concurrent four-month hold period imposed under CSE policies.
The Facility provides Digital Commodities with a flexible mechanism to acquire Bitcoin directly from VanCrypto, a privately held cryptocurrency miner in Western Canada powered entirely by renewable energy. Each purchase under the Facility is subject to customary due diligence and compliance with applicable securities laws and CSE policies.
About Digital Commodities Capital Corp.
Digital Commodities is a public investment issuer building a differentiated capital platform, focused on acquiring and utilizing bitcoin and gold as functional stores of value. The company's mission is to establish and actively manage a hard, non-fiat asset base with transparency and discipline. All capital allocation decisions are guided by a sound money philosophy and long-term value creation.
On behalf of the board of directors of Digital Commodities
Brayden Sutton
Chief Executive Officer and Director
Disclaimer
Forward-Looking Statements
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements relating to the Facility with VanCrypto; Digital Commodities intention to purchase $50,000 worth of bitcoin from VanCrypto in exchange for units of the Company; the expected timing of closing; and the Company's commitment to building shareholder value through prudent and innovative treasury management.
In making the forward-looking statements in this news release, the Company has applied certain material assumptions, including without limitation, that the Company will complete the purchase and sale of Bitcoin on the terms disclosed and on the timeline expected; that the CSE will not oppose the transaction; that the Facility will not be terminated early; that the Facility will give the Company a strategic advantage in navigating market conditions and executing its capital strategy; and that the Company will remain committed to building shareholder value through prudent and innovative treasury management.
These forward‐looking statements involve numerous risks and uncertainties, and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things that the CSE will oppose the transaction; that the Company will fail to complete the purchase and sale transaction on the timeline disclosed, or at all; that the Company will fail to complete due diligence prior to each drawdown, which may result in compliance issues with its Bitcoin purchases under the Facility; adverse changes to the cryptocurrency industry; adverse changes to cryptocurrency regulations; general economic, market or business conditions; uninsured risks; other regulatory changes; and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. 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. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/262148
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