Hut 8, one of the world’s largest public cryptocurrency mining companies by operating capacity and market capitalization, announced today that it has been conditionally approved to be listed on the Toronto Stock Exchange (TSX) via TSX Sandbox.
TSX Sandbox is an initiative intended to facilitate listing applications that may not satisfy all requirements and guidelines of TSX, but due to facts or situations unique to a particular issuer otherwise, warrant a listing on TSX.
“Our move to the TSX, the senior public market of the TMX Group, is another significant step in our evolution to provide improved liquidity and enhanced public disclosure to investors. We are grateful to the TSX for conditionally approving Hut 8 to be the first company through the TSX Sandbox.”
– Andrew Kiguel, Chief Executive Officer of Hut 8
The Process
While in the TSX Sandbox program, Hut 8’s common shares will trade in the same manner as other TSX listed companies. Hut 8 will exit the TSX Sandbox program upon the receipt of a prospectus (including a non-offering prospectus), and no significant compliance issues for a 12-month period.
If there is a significant compliance issue that occurs, the 12-month period resets. Also related to this TSX listing, Hut 8 will appoint a new corporate secretary. Hut 8 will provide further disclosure regarding the timing for the finalization of the uplisting to the TSX.
In addition, Hut 8 is required to disclose the following two risk factors that were also disclosed in the most recent Annual Information Form:
(1) The value of the Hut 8 shares relates directly to the value of the Bitcoins held directly or indirectly by the company, and (2) fluctuations in the price of Bitcoins could materially and adversely affect an investment in the Hut 8 shares.
In March 2018, Hut 8’s common shares commenced trading on the TSX Venture Exchange (TSXV) under the symbol HUT. While in December 2017, Hut 8 along with Bitfury set up the largest known bitcoin mining center in North America.