Fresh off their rapidly-subscribed $5.1 million private placement, DigiCrypts Blockchain Solutions Inc.—o/a DIGIMAX GLOBAL SOLUTIONS— (CNSX:DIGI) (OTCMKTS:DBKSF) has done it again. Although the company wasn’t seeking additional capital to build out its organic growth strategies, the chance to associate with a premier investment bank in the crypto space was just too enticing for DigiCrypts to pass up.
This evening, DigiCrypts announced that it has entered into securities purchase agreements with certain institutional investors, for gross proceeds of approximately C$13.2 million in a private placement of its equity securities, comprised of 37,793,715 common shares and warrants to purchase up to 37,793,715 common shares, at a purchase price of CAD$0.35 per Share and associated Warrant. The Warrants have an exercise price of CAD$0.365 per Share and exercise period of three and one-half years from the issuance date.
The net proceeds will be used for working capital and general corporate purposes and may be used to fund strategic partnerships that may include an acquisition of all or part of existing companies operating in similar artificial intelligence, or blockchain/crypto spaces.
Interestingly, the exclusive placement agent for the private placement was none other than H.C. Wainwright & Co. (HCW), which has developed a top crypto research division on Wall St.
H.C. Wainwright & Co., LLC (HCW) is a research driven equity capital markets focused bank that specializes in capital markets solutions for middle market companies worldwide. H.C. Wainwright has one of the largest equity research footprints covering more than 495 companies. The HCW Capital Markets Team is the #1 ranked underwriter/agent for smaller and middle market follow-on offering transactions cumulatively since 1998.
More poignantly, H.C. Wainwright & Co. is a leading Wall St. investment bank when in comes to crypto capital raising and coverage, having fostered the growth and visibility of the industry’s top companies. The table below highlights some of HCW’s prominent sector financings and ratings at the top end.
|Company||Ticker||Financing History||Coverage Rating||Current Price||Comments|
|Bitfarms Ltd.||BITF/BFARF||$20.0M PP @ $2.25 ($2.75 warrants) – 01/03/21||Initiated Buy/C$6.00 PT – 02/16/21||C$6.35||HCW acted as the exclusive placement agent for the PP in the U.S.|
|$20.0M PP @ $3.58 (US$3.10 warrants) – 01/10/21||HCW acted as the exclusive placement agent for the PP in the U.S.|
|$40.0M PP @ $3.46 (US $3.01 warrants) – 02/07/21||HCW acted as the exclusive placement agent for the PP in the U.S.|
|Hut 8 Mining||HUT/HUTMF||$77.5M PP @ $5.00 ($6.25 warrants) – 01/11/21||Initiated Buy/C$14.00 PT – 02/24/21||C$10.28||HCW acted as the exclusive placement agent for the PP in the U.S.|
|Marathon Digital Holdings||MARA||US$6.9M Public Offering @ $0.90 – 07.28/20||Buy/US$7.50 – 11/23/20||US$40.70||HCW acted as the sole book-running manager for the offering|
|US$250.0M Registered Direct Offering @ US$20 – 01/12/21||Maintains Buy/US$9.00 – 12/14/20||HCW acted as the exclusive placement agent for the offering|
|+3 other ATM offerings for approximately $306.0M||Maintains Buy/US$30.00 – 02/08/21||HCW acted as the sole agent for the Offerings|
|Mogo Inc.||MOGO||US$50.0M At-The-Market Offering – 12/31/20||Initated Buy/US$4.00 – 11/23/20||US$9.28||HCW acted as lead agent|
|US$54.0M Direct Offering ($US11.00 warrants) – 02/24/21||Maintains Buy/$US16.00 – 03/01/21||HCW acted as the exclusive placement agent for the Offering|
|Riot Blockchain||RIOT||US$100.0M At-The-Market Offering – 05/24/19||Maintained Buy/PT$3.50 – 03/27/20||US$62.81||HCW acted as lead agent|
|US$100.0M At-The-Market Offering – 10/07/20||Reiterated Buy/PT Raised to US$7.50 – 11/23/20||HCW acted as the sole agent for the Offerings|
|US$200.0M At-The-Market Offering – 12/04/20||Maintains Buy/US$28.00 – 02/08/21||HCW acted as the sole agent for the Offerings|
|Voyager Digital||VYGR/VYGVF||Initated Buy/C$12.00PT||C$21.09|
Obviously, this list reads as a who’s who of the top issues in the space. HCW not only has a pulse on the market, they have among the best track records in the space. Lead technology & crypto analysts Scott Buck and Kevin Dede are currently ranked #243 and #440 out of 7,377 analysts on TipRanks, respectively.
In addition to the above chart, H.C. Wainwright & Co. has helped lead capital raises for publicly-listed companies such as Argo Blockchain Plc, Blockchain Foundry Inc., Cryptostar Corp., Digihost Technology Inc., DMG Blockchain Solutions and Diginex Ltd.
So without further ado, we present a special post-raise interview with Chris Carl on why DigiCrypts entered this transformative agreement, as well further insight into the progression of CryptoDivine, the company’s exciting predictive AI crypto tool.