Matador Technologies Inc. Announces Closing of Convertible Note Facility to Expand Bitcoin Holdings

Core Viewpoint - Matador Technologies Inc. has successfully closed the first tranche of a secured convertible note facility, raising USD$10.5 million to purchase Bitcoin for its balance sheet [1][2]. Financing Details - The facility allows for an additional USD$89.5 million in follow-on drawdowns, contingent on regulatory approvals and specified conditions [2]. - The convertible notes bear an interest rate of 8% per annum, which will decrease to 5% after Matador uplists to NASDAQ or NYSE [2]. - Interest on the notes can be paid in cash, added to the principal, or converted into common shares [3]. Conversion and Maturity - All principal and interest under the notes can be converted into common shares, with a maximum of 19,842,083 shares available at a conversion price of USD$0.529178304 (CAD$0.72) per share [4]. - The notes will mature on December 7, 2027 [4]. Placement Agent and Fees - Joseph Gunnar & Co., LLC acted as the placement agent, receiving a total of USD$787,500 in fees and 992,104 broker warrants [6]. Strategic Objectives - Matador aims to acquire up to 1,000 BTC by 2026 and build its holdings to 6,000 BTC by 2027, with a long-term goal of holding approximately 1% of Bitcoin's total supply [8]. - The company is also pursuing a 24% ownership stake in HODL Systems, enhancing its position in the Bitcoin treasury space [9]. Company Overview - Matador Technologies focuses on holding Bitcoin as its primary treasury asset and developing products to enhance the Bitcoin network, aiming for long-term shareholder value and capital efficiency [7].