Business
Update on Hut 8’s Stalking Horse Bid for four natural gas power plants including the North Bay Bitcoin mine
MIAMI, Dec. 12, 2023 (GLOBE NEWSWIRE) -- Hut 8 Corp. (Nasdaq | TSX: HUT), ("Hut 8” or the “Company”) one of North America’s largest, most innovative digital
About this update from Hut 8 Corp.
[{"type":"text","content":"MIAMI, Dec. 12, 2023 (GLOBE NEWSWIRE) -- Hut 8 Corp. (Nasdaq | TSX: HUT), (\"Hut 8” or the “Company”) one of North America’s largest, most innovative digital asset mining pioneers and high performance computing infrastructure providers, has been informed by KSV Restructuring Inc. (\"KSV\") that the Company's previously announced stalking horse bid (the \"Stalking Horse Bid\") has been declared the successful bid in accordance with a sale and investment solicitation process (the \"SISP\") carried out by KSV. The Stalking Horse Bid was submitted in partnership with Macquarie Equipment Finance Ltd. (“Macquarie”), a subsidiary of Macquarie Group Limited, a global financial services group. The SISP was 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”). If Hut 8’s Stalking Horse Bid receives final approval from the Ontario Superior Court of Justice (Commercial List) (the “Court“) and is completed in accordance with its terms, a new Ontario subsidiary of Hut 8 (\"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, BidCo would acquire, free and clear of any encumbrances (excluding certain permitted encumbrances) four natural gas power plants located in Ontario: 40 MW facility in Kapuskasing110 MW facility in Kingston120 MW facility in Iroquois Falls40 MW facility and Bitcoin mine in North Bay Completion 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 and final resolution of all litigation claims and counterclaims currently pending between Hut 8 and certain Validus Entities. Completion of the Stalking Horse Bid is subject to several conditions, including: (i) the Court issuing an approval and vesting order in respect of the Stalking Horse Bid, and (ii) the satisfaction of standard conditions to closing. The Company will be seeking final approval of the Court for the Stalking Horse Bid and complet...