Business
TeraWulf Announces Beneficial Debt Modifications and Approximately $32 Million of New Equity Proceeds
Deal will Eliminate principal payments and defer amortization to April 2024 with ability to extend to maturity. Company expects to be fully funded to
About this update from Terawulf Inc.
[{"type":"text","content":"\nDeal will Eliminate principal payments and defer amortization to April 2024 with ability to extend to maturity.\n\nCompany expects to be fully funded to positive free cash flow from bitcoin mining operations in Q2 2023.\n\nAdvances industry leading growth rate to achieve targeted 160 MW and 5.5 EH of capacity in Q2 2023.\n\n EASTON, Md.--(BUSINESS WIRE)--\nTeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), which owns and operates vertically integrated, domestic Bitcoin mining facilities powered by more than 91% zero-carbon energy, today announced that it has (i) reached a binding agreement in principle with its existing lenders on certain debt modifications, subject to the equity capital raise condition, and (ii) raised approximately $32 million of equity proceeds, which together are expected to bring the Company to positive free cash flow and enable a timely path to achieving the Company’s operational objectives in 2023.\n\nRecent Developments Greatly Enhance Financial Position and Operating Leverage\n\n\nBeneficial Debt Restructuring: On January 27, 2023, the Company entered into a binding term sheet with its existing lenders that will, among other things, replace amortization of the term loan with a free cash flow sweep mechanism through April 2024, subject to the Company raising the requisite amount of equity proceeds by March 15, 2023.\n\n\nPublic Equity Offering: today, the Company announced the pricing of an underwritten follow-on offering of common stock (the “Offering”) for gross proceeds of $25 million, before deducting underwriter discounts and commissions and offering expenses. The Offering is expected to close on or about February 6, 2023, subject to the satisfaction of customary closing conditions.\n\n\nManagement Investment: today, TeraWulf also announced that its co-founders, Paul Prager, Chief Executive Officer, and Nazar Khan, Chief Operating Officer, purchased $2.5 million in a private placement at a market price of $1.05 per share (the last reported sale price of the Company’s common stock on the Nasdaq on January 26, 2023). The Management Investment is in addition to the more than $15 million of personal capital previously invested in the Company by management.\n\n\nOther Equity Proceeds: the Company announced it has received approximately $4.25 million in proceeds from the exercise of certain pri...