The post Core Scientific, Inc. Announces $55 Million Equity Rights Offering appeared on BitcoinEthereumNews.com.

Holders of Existing Common Interests entitled to purchase pro rata share of up to $55 million shares of reorganized Core Scientific AUSTIN, Texas–(BUSINESS WIRE)–$CORZQ #bitcoin—Core Scientific, Inc. (OTC: CORZQ) (“Core Scientific” or the “Company”), a leader in high-performance blockchain computing data centers and software solutions, today announced the commencement of a rights offering (the “Rights Offering”) to all holders of record of shares of the Company’s common stock (and certain other equity interests, including vested restricted stock units) (“Existing Common Interests”) as of 5:00 p.m., New York City time, on November 16, 2023 (the “Record Date”) pursuant to the Third Amended Joint Chapter 11 Plan of Reorganization of Core Scientific, Inc. and its Debtor Affiliates (the “Plan”) and the related Disclosure Statement. The Plan is the result of mediation and extensive negotiations that resulted in a Restructuring Support Agreement (the “RSA”) with certain of the Company’s key stakeholders, including an ad hoc group of the Company’s convertible note holders and the Official Committee of Equity Security Holders, that provides for a global settlement of issues between the Company and the other parties to the RSA. The Company has also reached settlements with several other key creditors, and with conditional approval of the Disclosure Statement, is moving forward with solicitation of the Plan and a potential exit from bankruptcy in early 2024. The Plan, which incorporates the RSA settlements and is premised on a $1.5 billion total enterprise value of reorganized Core Scientific, provides for a comprehensive restructuring of the Company’s balance sheet and will strengthen the Company by substantially reducing its debt and preserving more than 270 jobs, as well as provide a meaningful recovery to the Company’s existing shareholders. A key component of the Plan [and reorganized Core Scientific’s post-emergence liquidity] is the Rights Offering. On November 14, 2023,…

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Filed under: News - @ November 21, 2023 12:24 pm