"Metaplanet, the Tokyo-listed bitcoin treasury company, plans to raise up to 21 billion yen ($137 million) through a new share and warrant issuance as it doubles down on its strategy of accumulating bitcoin while reducing leverage. The company said it will raise the funds via a third-party allotment of new common shares and stock acquisition rights placed directly with select investors, rather than through a public offering."
"Under the plan, Metaplanet will issue 24.53 million new common shares priced at 499 yen per share - roughly 5% above the prior closing price - generating approximately 12.24 billion yen in upfront proceeds. The firm's shares closed at 456 yen, down about 4%, reflecting near-term dilution concerns despite the premium pricing. Each newly issued share will be accompanied by 0.65 stock acquisition rights, equivalent to 15.94 million potential additional shares and representing 65% warrant coverage."
"Importantly, the warrants are fixed-strike instruments rather than moving-strike warrants, limiting variable dilution for existing shareholders. "The 65% warrant coverage exercisable at ¥547 for one year is a fixed strike," said Dylan LeClair, head of bitcoin strategy at Metaplanet. "The financing structure enables Metaplanet to capitalize on common stock volatility to sell shares at a premium to market while raising capital today.""
Metaplanet will raise up to 21 billion yen via a third-party allotment of new common shares and stock acquisition rights placed with select investors. The firm will issue 24.53 million new shares at 499 yen each, producing about 12.24 billion yen up front. Each share includes 0.65 stock acquisition rights, equal to 15.94 million potential additional shares and 65% warrant coverage with a fixed exercise price of 547 yen exercisable for one year, potentially adding 8.9 billion yen if fully exercised. About 5.2 billion yen will partially repay existing debt, and the remaining proceeds will fund further bitcoin purchases, general corporate purposes, and expansion of bitcoin income-generation activities. Metaplanet currently carries roughly $280 million in outstanding debt.
Read at Bitcoin Magazine
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