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TORONTO, March 10, 2021 /CNW/ – CryptoStar Corp. (TSXV: CSTR) (“CryptoStar” or the “Company“), a cryptocurrency mining and data centre operator, is pleased to announce that it has entered into a securities purchase agreement for a private placement of its common shares (“Common Shares“) and warrants to purchase common shares (“Warrants“) to institutional investors for gross proceeds of approximately CAD$25.0 million (the “Private Placement“). Pursuant to the Private Placement, the Company will issue up to 83,333,334 Common Shares and Warrants to purchase up to 83,333,334 Common Shares at a purchase price of CAD$0.30 per Common Share and associated Warrant. Each Warrant will entitle the holder to purchase one Common Share at an exercise price of CAD$0.40 per Common Share for a period of three and one-half (3.5) years following the closing date of the Private Placement.
H.C. Wainwright & Co. is acting as the exclusive placement agent for the Private Placement.
The net proceeds of the Private Placement will be used by the Company for business operations and expansion of its business, to reduce indebtedness and for general working capital purposes.
The Company has applied to list the Common Shares issued in the Private Placement and the Common Shares underlying the Warrants on the TSX Venture Exchange (“TSXV“). The Private Placement is expected to close on or about March 15,…