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Zcash miner Fortitude buys 9.4% stake in HeartSciences
The $1.0 million private placement priced at $2.43 per share, a 22% premium to the closing price at the time of purchase.
Fortitude Mining, a Zcash-focused miner tied to Digital Currency Group, has bought a 9.4% stake in Nasdaq-listed HeartSciences for about $1 million, using the cash to fund HeartSciences operations while its proposed merger remains pending shareholder approval, according to CryptoSlate.
The Aug. 12 private placement covered 411,522 HeartSciences common shares at $2.43 each. HeartSciences said the price reflected a 22% premium to its closing share price on the purchase date, and it said the net proceeds would be used for operating expenses before the proposed combination closes, structuring the deal as cash equity rather than a loan.
Fortitude’s investment does not change the exchange ratio, and the company said Fortitude’s equity holders would not receive additional shares at closing tied to the $1 million injection. HeartSciences said the merger structure would give Digital Currency Group about 95% of the combined company’s voting interests, leaving existing HeartSciences holders with roughly 5% of voting and economic interests subject to the final capitalization and exchange-ratio mechanics.
HeartSciences’ preliminary proxy, filed earlier and still showing blank fields as of Aug. 20, indicates that the special meeting and record date were not yet set. The proxy also warns that if the merger fails, the company may have limited ability to continue operating and could need another strategic transaction, with potential liquidation if no viable alternative is available.
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