Abits Group announces private placement of US$16.47 million convertible note at US$14 million purchase price
ABTS•Private placement and equity line terms
Abits Group entered a private placement with one institutional investor for a US$16.47 million convertible promissory note, with up to US$14 million in proceeds.
The purchase price will be funded in three tranches: US$8 million at closing, up to US$2.5 million tied to an SEC Form F-1 filing, and up to US$3.5 million upon effectiveness.
The note carries a 15% original issue discount, 13% interest fully earned for 12 months, and matures 240 days after the final tranche funds.
Abits also signed a US$250 million equity line. The investor will receive a US$7.5 million commitment fee payable in shares or pre-funded warrants.
The company said there is substantial dilution risk because pricing is tied to market prices and share issuances cannot be determined upfront.
