Author: TSX Stocks

Galaxy Digital is launching a $300 million private offering of exchangeable senior notes due 2029 to fund the expansion of its West Texas Helios data center and support corporate initiatives.

Mike Novogratz’s Galaxy Digital Holdings announced on Nov. 20 that it plans to offer $300 million in exchangeable senior notes through a private placement to enhance its high-performance computing infrastructure at the Helios data center in West Texas and for general corporate purposes.

The offering includes an option for initial purchasers to buy an additional $45 million in notes within 13 days of issuance. The notes will accrue interest semiannually and mature on Dec. 1, 2029, according to the press release.

“The issuer intends to use the net proceeds from the offering to support the build-out of high-performance computing infrastructure at its Helios data center in West Texas and for general corporate purposes, including potential repurchases of its existing indebtedness.”

Galaxy Digital

Galaxy ramps up investment in Bitcoin mining operations

Galaxy Digital’s board has also approved a corporate reorganization to re-domicile the company to the U.S. Under this plan, existing shareholders will convert their ordinary shares into Class A common stock of Galaxy Digital Inc., a Delaware-based holding company.

The offering remains subject to approval by the Toronto Stock Exchange and is limited to qualified institutional buyers and purchasers under U.S. and Canadian securities laws.

Galaxy Digital acquired the Helios facility in late 2022. Located in Dickens County, West Texas, the 200-megawatt high-performance Bitcoin (BTC) mining and computing center was initially developed by Argo Blockchain and is among the largest crypto mining sites in North America.

The New York Stock Exchange has initiated proceedings to delist certain Lion Electric warrants, as their sale price has reached “abnormally low levels.”

The Quebec-based manufacturer of electric buses and trucks explained on Wednesday that the regulatory staff of the New York Stock Exchange decided to initiate proceedings to delist its warrants, which expire on May 6, 2026.

Trading in these warrants was suspended immediately, but trading in the company’s common stock and another series of warrants with an expiration date of Dec. 15, 2027, will continue.

According to Lion, the New York Stock Exchange made the decision because its regulatory staff determined that the warrants in question were no longer suitable for trading on the exchange due to “abnormally low levels of the sale price.”

The Saint-Jérôme-based company is evaluating the possibility of requesting a review of the decision.

Warrants give their holders the right to buy shares in the issuing company at a set price within a pre-determined period.

Lion uses this mechanism on the New York Stock Exchange and the Toronto Stock Exchange.

Lion Electric is currently going through a turbulent period.

On Monday, the company opened the door to a possible sale, maintaining that it was considering various sources of financing as well as solutions that “could include the sale of the company.”

Lion has reported losses in excess of $131 million over the last four quarters and has announced at least 520 redundancies so far this year, representing more than 40 per cent of its workforce.

On Tuesday, Lion’s shares closed down 15.54 per cent on the New York Stock Exchange at 24 US cents, and down 16.25 per cent on the Toronto Stock Exchange at 34 cents.

— This report by The Canadian Press was first published in French on Nov. 20, 2024.