Matador Technologies Raising C$1 Million To Invest In Bitcoin

Matador Technologies Inc. (TSXV: MATA, OTCQB: MATAF), a prominent Bitcoin-focused tech and investment company, recently made headlines with the announcement of a non-brokered private placement. The company is offering up to 5,454,546 units at a price of $0.55 each, with the goal of raising up to C$3,000,000 in gross proceeds.

The funds raised through this private placement will be divided into three equal parts. One-third of the proceeds will be allocated towards purchasing Bitcoin, further solidifying Matador’s position in the cryptocurrency market. Another third will be earmarked for expanding their gold acquisition plans and growing the Grammies business initiative. The remaining third will be utilized for general corporate purposes, including operational expenses, administrative costs, and potential new business opportunities.

Each unit offered in this private placement consists of one common share and half of a common share purchase warrant. Holders of the warrants will have the opportunity to purchase an additional share at $0.75 per share. These warrants will be valid for a period of 12 months from the date of issuance, providing investors with the flexibility to capitalize on future growth opportunities.

One noteworthy feature of this private placement is the inclusion of an acceleration clause. If Matador’s stock price reaches $1.05 or higher for five consecutive trading days on the TSX Venture Exchange after four months and one day from the closing date, the expiration of the warrants may be accelerated. This provision is designed to incentivize early participation and reward investors for the company’s success.

All securities issued as part of this private placement will be subject to a statutory hold period of four months and one day, in compliance with Canadian securities regulations. This restriction prevents investors from selling or trading their shares during the initial period, ensuring stability and regulatory compliance.

The private placement will be conducted under exemptions from traditional prospectus requirements and is open exclusively to accredited investors in Canadian provinces and other jurisdictions where permitted by law. Final approval from the TSX Venture Exchange is pending before the offering can be finalized.

This strategic private placement aligns with Matador’s long-term vision of strengthening its presence in both the Bitcoin and gold markets, while diversifying its investment portfolio. By focusing on digital and traditional assets, the company is well-positioned for sustainable growth and value creation. In a bold move in December 2024, Matador’s Board of Directors approved the purchase of $4.5 million in Bitcoin, further solidifying its commitment to the digital asset space.