Voyager Digital Ltd. (OTC:VYGVF) announced Thursday that it seeks to raise $25 million in gross proceeds from a private placement offer.
What Happened: The crypto-asset broker has entered into an agreement with agent Stifel GMP for the $25 million common stock offering. The offering is expected to close on or about January 22, 2021, subject to regulatory conditions and the Canadian exchange approvals.
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The agents will receive 7% cash commission and compensation warrants entitling them to purchase 7% of the shares from the current offering.
Why It Matters: Voyager intends to use the proceeds for general corporate purposes and business expansion.
With the rapid rise in crypto trading, Voyager has seen its business grow multifold. It clocked $200 million in assets under management (AUM) in December, doubling from $100 million in November and 40x in the trailing 12 months.
"AUM is a key metric for the performance of our business, and we are excited that users have placed their trust in our platform, which allows us to generate greater returns and thereby reinvest to bring new products to market faster, including our desktop platform, debit and credit cards, and margin offerings," co-founder and CEO Steve Ehrlich said at the time.
Voyager had raised C$5.7 million from a private offering in November.
Price Action: VYGVF shares closed 9.85% higher at $6.58 on Thursday.
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