Business
Hut 8 receives Court approval for a stalking horse bid for four natural gas power plants and the North Bay Bitcoin mine
Hut 8 seeking to become a vertically integrated mining operation and expand into energy operations, enhancing its infrastructure portfolio TORONTO, Nov. 3,
About this update from Hut 8 Corp.
[{"type":"text","content":"Hut 8 seeking to become a vertically integrated mining operation and expand into energy operations, enhancing its infrastructure portfolio\nTORONTO, Nov. 3, 2023 /PRNewswire/ - Hut 8 Mining Corp. (Nasdaq: HUT) (TSX: HUT) (\"Hut 8\" or the \"Company\") one of North America's largest, innovation-focused digital asset mining pioneers and high performance computing infrastructure providers, today announced that the Ontario Superior Court of Justice (Commercial List) (the \"Court\") has approved a stalking horse bid (the \"Stalking Horse Bid\") as part of the previously announced support agreement (the \"Support Agreement\") with Macquarie Equipment Finance Ltd. (\"Macquarie\"), a subsidiary of Macquarie Group Limited, a global financial services group.\n\n \n \n \n \n \n \n\n \nIn connection with the Stalking Horse Bid, the Court has also approved the implementation of a sale and investment solicitation process (the \"SISP\") to be carried out by KSV Restructuring Inc. The SISP is being conducted in respect of the sale of certain assets of Validus Power Corp. (\"Validus\") and the assets and operations of certain Validus' subsidiaries (collectively, the \"Validus Entities\").\nIf the Stalking Horse Bid is ultimately declared the successful bid in the SISP, as further approved by the Court, and completed in accordance with its terms, a new Ontario subsidiary of the Company (\"BidCo\") will become the owner of the assets of certain Validus Entities. Macquarie will receive a minority equity interest in BidCo of approximately 20% and a subsidiary of Hut 8 will be the majority owner with the remaining approximately 80%. On completion of the Stalking Horse Bid in accordance with the SISP, BidCo would acquire, free and clear of any encumbrances (excluding certain permitted encumbrances) four natural gas power plants located in Ontario:\n40 MW facility in Kapuskasing110 MW facility in Kingston120 MW facility in Iroquois Falls40 MW facility and Bitcoin mine in North BayA transaction agreement in respect of the Stalking Horse Bid will be made available on the Company's corporate profile on www.sedarplus.ca.\nCompletion of the Stalking Horse Bid would also include a new secured funding arrangement with Macquarie and BidCo in the form of an operating lease facility. The completion of the Stalking Horse Bid is also expected to result in the full...