Matador Technologies Inc. Announces Closing of Convertible Note Facility to Expand Bitcoin Holdings

Executive Summary

• Matador Technologies closed the initial tranche of a $10.5 million secured convertible note facility with ATW Partners.
• Proceeds are earmarked exclusively for Bitcoin purchases; up to an additional $89.5 million remains available under the facility pending regulatory approvals.
• The notes bear 8% interest (scaling down to 5% after uplisting), mature on Dec 7 2027, and are convertible into up to 19,842,083 common shares at USD 0.529178304 per share; placement agent received $525k fee, $262.5k advisory fee, and 992,104 broker warrants.

Key Details

• Initial Closing Amount: USD 10,500,000 of convertible notes issued to ATW Partners.
• Facility Capacity: Additional USD 89.5 million available for future drawdowns, subject to regulatory approvals and other conditions.
• Use of Proceeds: 100% allocated to purchase Bitcoin for Matador’s balance sheet.
• Bitcoin Accumulation Targets: Up to 1,000 BTC by 2026; 6,000 BTC by 2027; aim to hold ~1 % of total Bitcoin supply (top‑20 corporate holder).
• Interest Rate: 8% per annum initially; reduces to 5% after delisting from TSXV and successful uplisting to NASDAQ/NYSE.
• Conversion Terms: Up to 19,842,083 common shares convertible at USD 0.529178304 (CAD 0.72) per share; maturity date Dec 7 2027.
• Interest Payment Options: Cash, added to principal, or conversion into common shares (or any combination).
• Placement Agent: Joseph Gunnar & Co., LLC – received placement fee of USD 525,000, advisory fee of USD 262,500, and issued 992,104 broker warrants.
• Broker Warrants: Each exercisable for one common share at USD 0.529178304 (CAD 0.72) for five years from note issuance.
• Regulatory Status: Notes issued outside Canada under OSC Rule 72‑503; not subject to Canadian statutory hold period. Final TSXV approval still required.

Notable Quotes

(No direct quotes were provided in the release.)