đ The United States Bankruptcy Court has given the green light to Core Scientific's Chapter 11 reorganization plan. This means they're on track to relist on Nasdaq by the end of January 2024.
Here's the scoop: Shareholders as of January 23, 2024, are in for a treat. They'll receive shares of Core Scientific's new common stock and warrants, making up around 60% of the company's fresh equity. This includes exercising existing warrants and issuing new shares through an equity rights offering.
The plan also boasts a cool $1 billion reduction in debt, thanks to the potential cash exercise of warrants. Adam Sullivan, Core Scientificâs CEO, is pumped about the development, highlighting the company's readiness to emerge stronger and create value for shareholders.
The reorganization isn't just about reducing debt; it involves converting around $400 million in claims, slicing annual debt service by $60 million, and welcoming a $95 million boost in exit capital. This includes $55 million from an equity rights offering and $40 million from a new-money financing deal.
Core Scientific, once a leading Bitcoin miner, faced challenges during the crypto winter in 2022 and sought bankruptcy protection. Now, with Bitcoin prices on the rise and a reorganization plan approved, they're set to make a comeback. Kudos to Core Scientific for navigating this journey and emerging stronger!
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