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Investing.com -- Bitdeer Technologies Group (NASDAQ:BTDR), a Bitcoin mining and AI cloud technology company, saw its shares plunge 16.9% in after-hours trading on Wednesday after announcing plans for a registered direct offering of Class A ordinary shares to certain holders of its convertible senior notes.
The company intends to sell an undisclosed number of Class A ordinary shares to holders of its 5.25% convertible senior notes due 2029, with the price per share to be determined at pricing. Bitdeer plans to use proceeds from this offering, along with funds from a separately announced private offering of Convertible Senior Notes due 2031, to repurchase a portion of its November 2029 notes for cash in privately negotiated transactions.
The significant stock decline reflects investor concerns about potential dilution from the new share issuance. Barclays Capital Inc. is acting as placement agent for the offering, while ICR Capital LLC serves as financial advisor.
"This strategic financial move allows us to restructure a portion of our outstanding convertible notes," said a company representative, though specific details on the size of the offering remain undisclosed.
The registered direct offering is contingent on the completion of both the notes offering and note repurchase transactions, while the note repurchase transactions depend on the completion of the notes offering and registered direct offering. The company noted that the notes offering itself is not contingent on the other transactions.
Bitdeer made the announcement via a regulatory filing with the SEC, noting that a preliminary prospectus supplement and accompanying prospectus will be available on the SEC’s website.
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