Digihost Announces Fully Subscribed Private Placement of Common Shares and Debt

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VANCOUVER, British Columbia, Jan. 05, 2021 (GLOBE NEWSWIRE) — Digihost Technology Inc. (“Digihost” or the “Company”) (TSXV: DGHI; OTCPK: HSSHF) is pleased to announce a fully subscribed private placement of common shares (the “Shares”) sold at $0.79 per share for gross proceeds of $283,400 (the “Offering”). Completion of the Offering is expected within five business days and is subject to approval of the TSX Venture Exchange and closing.

The Offering has been placed with investors based in the United States and Europe. The Shares issued pursuant to the Offering will be subject to a statutory hold period of four months and one day in accordance with applicable securities laws.

Proceeds of the Offering will be used for the acquisition of miners and for general working capital purposes.

This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.

Debt Settlement

The Company is also pleased to announce that it has entered into a debt settlement agreement with two of its third-party creditors (the “Creditors”) and pursuant to the debt settlement agreement will, subject to receipt of approval of the TSX Venture Exchange, issue an aggregate of 96,815 common shares in the capital of the Company, at a deemed price of $1.05 per common share, in consideration for the settlement of a total of US$80,000 in accrued liabilities owing to the Creditors in respect of consulting fees (the “Debt Settlement”). The Company expects that the proposed Debt Settlement will assist the Company in preserving its cash for working capital. All securities to be issued pursuant to the Debt Settlement will be subject to a four month and one day statutory hold period from the closing date. The Debt Settlement is subject to all necessary regulatory approvals including from the TSX Venture Exchange.

Stock Option Grant

The Company also announces that it has granted to the directors of the Company an aggregate of 1,325,000 incentive stock options (the “Stock Options”) to purchase common shares under the Company’s incentive stock option plan (the “Plan”). Each Stock Option is exercisable into a common share of the Company at a price of $1.25 for a period of five years from the date of grant. The Stock Options will vest fully on the six-month anniversary of the date of grant and be subject to the terms and conditions of the Plan and the policies of the TSX Venture Exchange.

About Digihost Technology Inc.
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