Matador Technologies Inc. (TSXV: MATA) (OTCQB: MATAF) (FSE: IU3), a Bitcoin-focused technology company, announced the successful closing of the first tranche under its secured convertible note facility providing for up to USD $100 million in aggregate principal amount. The initial closing resulted in the issuance of secured convertible notes totaling USD $10.5 million, subject to customary closing conditions.
The notes bear interest at 8% per annum, which may be reduced to 5% per annum upon a proposed uplisting to Nasdaq or the NYSE, in accordance with the terms of the facility. Interest may be paid in cash, added to principal, or converted into common shares. The notes are convertible into up to 19,842,083 common shares at a conversion price of USD $0.529178304 (CAD $0.72) per share and mature on December 7, 2027.
Net proceeds from the initial tranche are expected to be used to acquire Bitcoin for the Company’s balance sheet and to support its long-term digital asset strategy.
Joseph Gunnar & Co., LLC acted as placement agent for the transaction. Lucosky Brookman LLP served as counsel to Joseph Gunnar & Co., LLC in connection with the financing.
