An AI data center firm just raised $25 million, but 90% of it vanishes in days to pay off one massive loan
Bitzero Holdings closed a private placement on July 30, selling 5,828,342 special warrants at $4.25 each for about $24.77 million. It plans to use $22.375 million of the proceeds to repay secured-loan principal on or about Aug. 6, before adding accrued interest and other amounts due. After payment, the company expects its liens and security interests to be released. Each special warrant will automatically convert into one common share and one common-share purchase warrant at no extra cost, either upon prospectus qualification or after four months and one day. That first conversion would add 5,828,342 shares, or about 10.8% of the 54,035,007 shares outstanding on Aug. 4. If all $5 warrants are later exercised, total new shares from the placement would reach 11,656,684, or about 21.6% of that share count.
