- HIVE Digital Technologies (HIVE, Financial) announces expanded ATM program for up to US$119.2 million.
- ATM program to be conducted on both TSX Venture Exchange and Nasdaq Stock Market.
- Proceeds are intended for corporate purposes, working capital, debt repayment, and acquisitions.
HIVE Digital Technologies (HIVE) has unveiled an updated equity distribution agreement enabling the company to sell up to US$119.2 million in common shares through an at-the-market (ATM) program. This comes after a successful earlier agreement in October 2023, where the company raised US$180.7 million through a similar strategy.
The new ATM program is designed to offer financial flexibility by allowing shares to be sold at prevailing market prices through a consortium of agents, including Keefe, Bruyette & Woods, Stifel Nicolaus, and others. This approach enables HIVE to adjust the timing and volume of shares sold while maintaining control over its equity distribution.
The company plans to utilize the proceeds from the ATM program for various corporate purposes. These include general corporate activities, enhancing working capital, repaying debt, and potentially funding future acquisitions. Notably, HIVE retains the flexibility to terminate the agreement before reaching the maximum fundraising target, without any obligation to sell the entire amount of allocated shares.
HIVE's ability to leverage its ATM program signifies its confidence in capitalizing on favorable market conditions while maintaining strategic financial operations in a challenging digital currency sector. This financial strategy ensures that HIVE remains agile and capable of responding to market opportunities as they arise.
