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Vulcan says unclosed financing leaves $33.1 million notes at risk

Vulcan, formerly Greenidge Generation, had not received PIPE proceeds as of Aug. 16, leaving it exposed because the Oct. 10 closing date comes just weeks before its Oct. 31 notes maturity.

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Vulcan, formerly Greenidge Generation, warned that it could face bankruptcy risk because a planned financing had not closed, leaving $33.1 million of senior notes due Oct. 31 potentially exposed.

Under its plan, a Vulcan private investment in public equity, or PIPE, would total $39.4 million and would redeem $33.1 million in senior notes. As of Aug. 16, Vulcan said the PIPE had not closed, with no proceeds received and no securities issued.

The company said it held $3.197 million in cash and cash equivalents and $6.027 million in digital assets as of June 30, versus $33.138 million of note principal. The financing would involve selling 17,146,190 shares at $1.71 each, raising about $29.3 million, and also issuing a $10 million convertible note to Machine Investment Group.

Vulcan said closing depends on conditions including Nasdaq listing approval, delivery of transaction and collateral documents, and stockholder consent, plus at least $30 million of gross proceeds. The agreements can be terminated if closing has not occurred by Oct. 10, which is 21 days before the notes mature on Oct. 31.

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