Matador Technologies Inc. Closes on New Financing for Bitcoin Expansion
Matador Technologies Inc. (TSXV:MATA, OTCQB:MATAF, FSE:IU3), a prominent player in the Bitcoin ecosystem, proudly announces the successful closing of the first tranche of its secured convertible note facility. This strategic financial move, made in collaboration with ATW Partners, has resulted in the issuance of convertible notes totaling USD$10,500,000.
Utilization of Funds for Bitcoin Purchases
The principal aim of the Facility is to significantly bolster Matador's Bitcoin holdings. With an impressive additional USD$89.5 million available for future drawdowns, the company is well-positioned to enhance its purchase strategy for Bitcoin, contingent upon obtaining necessary regulatory approvals.
Long-Term Bitcoin Acquisition Goals
Matador's capital raise aligns with its ambitious long-term Bitcoin objectives, which include:
- Acquiring up to 1,000 Bitcoin by 2026.
- Increasing holdings to 6,000 Bitcoin by 2027.
- Aiming to retain approximately 1% of Bitcoin's total supply, positioning the company within the top 20 corporate holders globally.
Details on the Convertible Notes and Their Terms
The notes issued carry an annual interest rate of 8%, which can reduce to 5% following Matador's delisting from the TSX Venture Exchange and listing on a higher platform like NASDAQ or NYSE. The terms of the notes also provide flexibility for the company by allowing interest payments in cash, adjusted to the principal amount, or as common shares.
Conversion Terms and Share Issuance
Outstanding principal and interest under the notes can be converted into common shares under certain conditions, which include the approval of the TSXV. There is a potential to issue up to 19,842,083 common shares upon conversion, at a designated conversion price of USD$0.529178304 (equivalent to CAD$0.72) per share. The maturity date for the notes from this Initial Closing is set for December 7, 2027.
Regulatory Compliance and Placement Agent
The issuance of notes and the corresponding common shares are conducted in accordance with Ontario Securities Commission regulations, ensuring compliance by avoiding statutory hold periods that typically apply under Canadian securities law.
Joseph Gunnar & Co., LLC has been appointed as the placement agent, facilitating this transaction for Matador. For their services, the placement agent is entitled to a fee structured around the funds raised, inclusive of broker warrants that offer additional incentives for common share acquisitions over a five-year period.
Commitment to Bitcoin as a Treasury Asset
Matador Technologies continues to focus on accumulating Bitcoin as its primary treasury asset. The company aims to develop innovative products that enhance the Bitcoin network and further its strategic objectives. This recent convertible note facility signifies Matador's commitment to positioning itself as a leader in the Bitcoin treasury sector.
Recently, Matador has also embarked on an exciting venture by agreeing to invest in HODL Systems, aiming to secure a 24% stake in one of India’s pioneering digital asset treasury firms. This strategic move underscores Matador's dedication to expanding its influence and fostering the global acceptance of Bitcoin as a key reserve asset.
Conclusion and Future Outlook
With a clear focus on innovation and a Bitcoin-first strategy, Matador Technologies is not just shaping its future, but also the future of financial infrastructure centered around Bitcoin. Investors and industry participants alike are encouraged to watch Matador as it continues to grow and adapt in the ever-evolving landscape of digital assets.
For further inquiries, the company encourages individuals to reach out to their media contact:
Media Contact:
Deven Soni
Chief Executive Officer
Email: deven@matador.network
Phone: 647-496-6282
Frequently Asked Questions
What is the purpose of the convertible note facility announced by Matador?
The convertible note facility aims to raise capital specifically for purchasing Bitcoin, enhancing Matador's balance sheet and overall strategy.
How much Bitcoin does Matador plan to acquire by 2026?
Matador plans to acquire up to 1,000 Bitcoin by the year 2026 as part of its ambitious long-term goals.
What are the main terms of the convertible notes issued by Matador?
The notes carry an interest rate of 8% per annum, reducing to 5% upon the successful uplisting to NASDAQ or NYSE and have a maturity date set for December 7, 2027.
Who is the placement agent for Matador's recent transaction?
Joseph Gunnar & Co., LLC is acting as the placement agent for this transaction, ensuring the successful closing of the financing facility.
What recent expansion efforts is Matador pursuing?
Matador is pursuing an investment in HODL Systems to secure a 24% ownership stake, reinforcing its position in the digital asset treasury sector.
