Matador Technologies (MATA.V) said Monday after-trade a second amendment to a $100 million convertible-note facility with a US institutional investor will allow it to commit to regular Bitcoin purchase.
The amendment allows for 10% of the net proceeds of every sale of shares under the facility to purchase Bitcoin within five business days of the end of the calendar month in which the sale settled.
Matador's treasury strategy is built on regular accumulation of Bitcoin, and the amendment allows that practice to continue in the company's financing arrangements, a statement said.
The company's at the market (ATM) equity program, announced earlier this year, allows Matador to sell up to C$30 million of shares. The ATM operates under Matador's C$80 million base shelf prospectus. The second amendment does not increase the size of the ATM program or of the base shelf prospectus, but preserves Matador's ability to establish ATM offerings or distribution agreements while Notes remain outstanding, the statement added.
Matador shares closed unchanged at C$0.025 on the TSX Venture Exchange, a 52-week low.