TeraWulf Inc., an Easton, Md.-based company formed to own and operate fully integrated environmentally clean bitcoin mining facilities in the United States, raised approximately $200m in debt and equity financing.
Backers included a group of leading institutional and individual investors. As part of the debt and equity financing, TeraWulf entered into an approximately $123.5m three-year senior secured term loan and issued to the lenders newly issued shares of TeraWulf’s common stock. In addition, the company entered into subscription agreements with investors to purchase newly issued shares of its common stock in private placement transactions for an aggregate purchase price of approximately $76.5m. The issuance of these newly issued shares was made pursuant to an exemption from the registration requirements of the Securities Act.
The company intends to use the funds to enable it to achieve 6 exahash per second, or 200 megawatts, of mining capacity by the second half of 2022.
Led by Paul Prager, Chairman and Chief Executive Officer, TeraWulf will generate domestically produced bitcoin powered by nuclear, hydro and solar energy. The company previously announced it expects to become a Nasdaq-listed public company through a business combination with IKONICS Corporation (Nasdaq: IKNX), a Duluth, Minnesota imaging technology company.
Subject to approval by IKONICS’s shareholders and the satisfaction of other customary closing conditions, the business combination is expected to be completed during the week of December 13, 2021. Concurrent with the completion of the business combination, Telluride Holdco, Inc., the parent company of TeraWulf and IKONICS following the completion of the business combination, is expected to be renamed “TeraWulf Inc.”, and its shares of common stock are expected to be listed on The Nasdaq Stock Market LLC under the trading symbol “WULF.”
FinSMEs
03/12/2021