Digihost Announces Purchase of Shares by CEO, Michel Amar, for $3.344 Million
01 March 2021 - 10:00AM
Digihost Technology Inc. (“
Digihost” or the
“
Company”) (TSXV: DGHI; OTCQB: HSSHF) is pleased
to announce that that Michel Amar, director and Chief Executive
Officer of Digihost, has purchased an aggregate of 1,520,000
subordinate voting shares in the capital of Digihost (“
SV
Shares”) in a private transaction with escrowed
shareholders at CAD$2.20 per SV Share, for aggregate consideration
of CAD$3,344,000 (the “
Share Acquisition”). A
total of 1,127,328 SV Shares are currently held in escrow. The
transfer is subject to TSX Venture Exchange approval. As a result
of this acquisition, Michel Amar has ownership, control and
direction through his holding companies of 14,475,716 SV Shares,
representing 31.81% of the issued and outstanding shares of the
class on a non-diluted basis, and 32.91% of the issued and
outstanding shares of the class on a partially diluted basis, as
well as 10,000 proportional voting shares (“
PV
Shares”) which represent 100% of the PV Shares.
Michel Amar said of the purchases, “I believe in
the future of the blockchain economy and I have confidence in our
Buffalo bitcoin mining facility and the talent of our operations
team. The Company is well positioned to execute on its vision for
expansion and good results. With my increased shareholding, and my
previously announced salary of $1.00 for 2021, I continue to align
myself with Digihost’s long-term growth strategy, as we continue to
create shareholder value.”
This press release is being disseminated as
required by National Instrument 62-103 – The Early Warning System
and Related Take Over Bids and Insider Reporting Issues, with
respect to the filing of an early warning report by Michel Amar.
Prior to the Share Acquisition, Mr. Amar had ownership, control and
direction through his holding companies of 12,955,716 SV Shares,
representing 28.47% of the issued and outstanding shares of the
class on a non-diluted basis, and 29.63% of the issued and
outstanding shares of the class on a partially diluted basis.
Michel Amar acquired the shares for investment
purposes and he may in the future take such actions in respect of
his holdings as deemed appropriate in light of the circumstances
then existing, including the purchase of additional shares or other
securities of Digihost through open market purchases.
For further details, please see the Early
Warning Report, a copy of which is available on the Company’s
profile on SEDAR at www.sedar.com.
About Digihost Technology
Inc.
Digihost is a growth-oriented blockchain company
primarily focused on Bitcoin mining. The Company's mining facility
is located in Buffalo, N.Y., and is equipped with an 18.7MVA
115,000-kilovolt-ampere outdoor substation with an option to
increase the power output to 42MVA. The Company is currently
hashing approximately 1.2 Bitcoins per day, subject to difficulty.
Digihost’s strategy is to focus on continually increasing its
hashrate with a concurrent reduction in energy costs.
For further information, please contact:
Digihost Technology
Inc.www.digihost.ca Michel Amar, Chief Executive Officer
Email: michelamar@me.com
Cautionary StatementTrading in
the securities of the Company should be considered highly
speculative. No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information
contained herein. Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Forward-Looking Statements
Except for the statements of historical fact, this news release
contains “forward-looking information” within the meaning of the
applicable Canadian securities legislation that is based on
expectations, estimates and projections as at the date of this news
release. “Forward-looking information” in this news release
includes information about potential further improvements to
profitability and efficiency across mining operations, potential
for the Company’s long-term growth, and the business goals and
objectives of the Company. Factors that could cause actual results
to differ materially from those described in such forward-looking
information include, but are not limited to: continued effects of
the COVID19 pandemic may have a material adverse effect on the
Company’s performance as supply chains are disrupted and prevent
the Company from operating its assets; a decrease in cryptocurrency
pricing, volume of transaction activity or generally, the
profitability of cryptocurrency mining; further improvements to
profitability and efficiency may not be realized; the digital
currency market; the Company’s ability to successfully mine digital
currency on the cloud; the Company may not be able to profitably
liquidate its current digital currency inventory, or at all; a
decline in digital currency prices may have a significant negative
impact on the Company’s operations; the volatility of digital
currency prices; and other related risks as more fully set out in
the Annual Information Form of the Company and other documents
disclosed under the Company’s filings at www.sedar.com. The
forward-looking information in this news release reflects the
current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about: the current
profitability in mining cryptocurrency (including pricing and
volume of current transaction activity); profitable use of the
Company’s assets going forward; the Company’s ability to profitably
liquidate its digital currency inventory as required; historical
prices of digital currencies and the ability of the Company to mine
digital currencies on the cloud will be consistent with historical
prices; and there will be no regulation or law that will prevent
the Company from operating its business. The Company has also
assumed that no significant events occur outside of the Company's
normal course of business. Although the Company believes that the
assumptions inherent in the forward-looking information are
reasonable, forward-looking information is not a guarantee of
future performance and accordingly undue reliance should not be put
on such information due to the inherent uncertainty therein.
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