07:01 AM EDT, 08/06/2024 (MT Newswires) -- Digihost Technology ( DGHI ) , a U.S. based blockchain technology and computer infrastructure company, was at last look up nearly 9% in U.S. premarket trade on Tuesday as it entered into subscription agreements with institutional investors for up to US$4 million in a private placement.

A statement said the placement will be comprised of 3,636,363 units in the company at a purchase price of US$1.10 per unit, representing a premium of 9% to the most recent closing price of the shares on the Nasdaq.

Each unit is comprised of one subordinate voting share of the company and one warrant, with each warrant entitling the holder to purchase one additional share. The warrants have an exercise price of US$2 per share and exercise period of three years from the issuance date.

The proceeds of the private placement will be used primarily for acquisitions related to infrastructure expansion and for general working capital purposes. The consummation of the private placement is subject to the receipt of all required corporate and regulatory approvals, including the approval of the TSX Venture Exchange, and other customary closing conditions, and is expected to occur on or about August 9.