CORRECTION – Matador Technologies Inc. Announces Updated Terms of USD$100 Million Convertible Note Facility to Expand Bitcoin Holdings

Core Viewpoint - Matador Technologies Inc. has announced a corrective disclosure regarding its amended secured convertible note facility, which allows the company to issue up to USD$100 million in convertible notes to fund Bitcoin purchases for its balance sheet [2][3]. Group 1: Financing Details - The amended facility includes an initial tranche of USD$10.5 million, with an additional USD$89.5 million available, contingent on regulatory approvals and other conditions [3]. - The investor, ATW Partners, can require the issuance of additional notes totaling up to USD$46.25 million before the uplisting and up to USD$28.75 million after, for a total of USD$75 million [3]. - A commitment fee of 5% of the purchase price of all notes sold will be paid to the investor [3]. Group 2: Strategic Objectives - The financing is aimed at supporting Matador's long-term Bitcoin accumulation plan, with a goal of acquiring up to 1,000 BTC by 2026 [4]. - The company aims to build its Bitcoin holdings to 6,000 BTC by 2027 and to hold approximately 1% of Bitcoin's total supply, positioning itself among the top 20 corporate holders globally [5]. Group 3: Interest and Conversion Terms - The notes will bear an interest rate of 8% per annum, reducing to 5% after uplisting to NASDAQ or NYSE, with a potential increase to 18% in case of default [6]. - Special interest payments will be made based on the occurrence of specific events, with detailed calculations provided for both successful uplisting and failure scenarios [7]. - The principal and interest can be converted into common shares, with a maximum of 19,842,083 shares available for conversion under the initial closing [10]. Group 4: Security and Collateral - The notes will be secured by collateral consisting of Bitcoin, with a requirement of 150% of the principal amount for the initial closing and 100% for subsequent closings [15]. - The conversion price for the principal amount will vary based on the company's listing status, with specific pricing mechanisms outlined for both pre- and post-uplisting scenarios [11][13]. Group 5: Institutional Partnership - ATW Partners is identified as a leading U.S.-based institutional investor focused on innovative growth-stage financing, enhancing Matador's capital strategy [5]. - The partnership underscores sustained institutional interest in Matador's Bitcoin-centric strategy [4]. Group 6: Expansion Plans - Matador is also pursuing an investment in HODL Systems, aiming for a 24% ownership stake, which will strengthen its position as a leading Bitcoin treasury company [19].