Digi Power X Inc (NASDAQ:DGXX, TSX-V:DGX) announced that it has entered into a definitive securities purchase agreement to raise approximately US $15 million in gross proceeds through a registered direct offering of common stock.
The offering involves the sale of approximately 4.8 million shares, or pre-funded warrants in lieu thereof, at US$3.12 per share to a single new fundamental institutional investor.
The proceeds of the offering are expected to support expansion of the company's NeoCloud Tier 3 AI infrastructure, accelerate manufacturing and global distribution of ARMS 200 pods, fund strategic joint ventures and PPA-backed energy deployments, and extend its operating runway with an emphasis on non-dilutive financing.
Following the closing of the offering, Digi Power X expects to hold over US$30 million in cash and cash equivalents, with no long-term debt.
“This financing solidifies Digi Power X’s capital position as we transition from deployment to monetization,” Digi Power X CEO Michel Amar said in a statement.
“With a balance sheet free of long-term debt and with significant cash reserves, following the offering, we expect to be well-positioned to accelerate the rollout of high-performance compute infrastructure and scale global operations.”
The offering is expected to close on or about July 22.
Investors cheered the update, sending shares of Digi Power X up 8.2% shortly after US markets opened on Monday.