Sphere 3D Corp. Announces Pricing of $6 Million Registered Direct Offering and Concurrent Private Placement

Core Viewpoint - Sphere 3D Corp. has announced a registered direct offering and concurrent private placement to raise approximately $6 million for its Bitcoin mining operations [2][4]. Group 1: Offering Details - The company has entered into a securities purchase agreement with a single institutional investor for the issuance of 4,225,353 common shares at a price of $1.42 per share [2]. - In the concurrent private placement, the company will issue warrants to purchase up to 4,225,353 common shares with an exercise price of $1.50 per share, exercisable six months from issuance and expiring in five and a half years [3]. - The gross proceeds from the offerings are expected to be around $6 million before deducting fees and expenses [4]. Group 2: Use of Proceeds - The net proceeds from the offerings will be utilized to enhance operational efficiency, upgrade the mining fleet, integrate infrastructure, and for general corporate purposes [4]. Group 3: Closing and Regulatory Information - The offerings are expected to close on or about November 21, 2024, subject to customary closing conditions [5]. - The shares are being offered under a registration statement declared effective by the SEC on October 15, 2024 [6]. Group 4: Existing Warrants Amendment - The company will amend existing warrants previously issued to the investor, reducing the exercise price from $66.50 to $1.50 per share and changing the exercise date and termination date to align with the new offerings [8][9]. Group 5: Company Overview - Sphere 3D Corp. is a cryptocurrency miner focused on expanding its industrial-scale Bitcoin mining operations through efficient procurement of next-generation mining equipment and partnerships with leading data center operators [11].