Sysorex Provides Financial Update
HERNDON, Va., Sept. 21, 2021 (GLOBE NEWSWIRE) -- Sysorex (OTCQB: SYSX) (“Sysorex” or the “Company”), the preeminent, U.S.-based, publicly traded Ethereum mining and technologies company is providing a financial update to its shareholders.
The Company received approximately $12.4 million in gross proceeds from the private placement offering of convertible debentures and warrants to purchase common stock before deducting offering expenses and placement agent’s commissions. The first closing occurred on July 7, 2021 and the second on August 13, 2021. As a result of the offering, the Company issued approximately $14 million of debentures and warrants to purchase up to 5,397,030 shares of the Company’s common stock.
The terms of the debentures and warrants and the details on each closing are set forth in the Company’s Current Reports filed with the SEC on July 12, 2021 and August 19, 2021. Joseph Gunnar & Co. LLC, a U.S. registered broker-dealer, acted as the sole placement agent in connection with the private placement.
Wayne Wasserberg, CEO of Sysorex, commented, “Sysorex intends to deploy the net proceeds from the offering to increase its data center capacity, grow its management team and to further its business objectives in the expansion of its Ethereum mining business and implementation of its Ethereum 2.0 strategies. The Company also plans to advance decentralized finance (DeFi) and Non-fungible token (NFT) Ethereum Blockchain opportunities.”
“Sysorex has now fully paid for all of the approximately 10,000 GPUs that its owns and has settled all remaining debt and legal and audit expenses related to the reverse merger completed on April 14, 2021,” continued Mr. Wasserberg. “Whereas the Company no longer needs to sell the Ethereum it is mining to fund operating expenses, the Company has added more than $2.5 million in Ethereum to its balance sheet since the first closing.”
“We appreciate the support of the investors in the private placement, and we believe this funding further validates our solid business model, will help accelerate our success in the cryptocurrency space, and advance the Company towards our planned national exchange listing,” concluded Mr. Wasserberg.
This press release does not constitute an offer to sell or the solicitation of an offer to buy debentures, warrants, or any other securities of the Company, nor there shall be any offer, solicitation, or sale of securities of the Company in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale is unlawful.
ABOUT SYSOREX, INC.
Sysorex, Inc. (“Company”) is a data center owner and operator and is the preeminent U.S.-based, publicly traded Ethereum mining and Ethereum Blockchain technologies company. Following the Company’s merger with TTM Digital Assets & Technologies, Inc. (“TTM”), the Company shifted its primary business focus to the mining of Ether (ETH) and opportunities related to the Ethereum Blockchain. The Company currently owns and operates approximately 10,000 NVIDIA GPUs generating approximately 500 Gigahash of computing power, which GPUs include thousands of Cryptocurrency Mining Processors (“CMPs”). These GPUs are currently online and securing the Ethereum Blockchain and generating ETH around the clock with industry leading efficiency. In addition to the mining of ETH, the Company continues to operate its wholly owned subsidiary, Sysorex Government Services, Inc. (“SGS”), a business that provides information technology products, solutions and services to federal, state, and local government, including system integrators. The Company is also advancing strategies to leverage decentralized finance (“De-Fi”) and Non-Fungible Token (“NFT”) opportunities powered by the Ethereum Blockchain.
Safe Harbor Statement
All statements in this release that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements relating to the size and timing of the offering, the anticipated use of any proceeds from the offering, and the impact of the closing on the Company’s business, operations, and strategies. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.Forward-looking statements in this communication include, among other things, statements about the potential benefits of the private offering, the intended use of proceeds, and possible or assumed business strategies of the Company.
While the Company has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of the control of the Company and its subsidiaries, which could cause actual results to materially differ from such statements, including the uncertainties related to market conditions and the completion of the offering on the anticipated terms or at all, the other factors discussed in the “Risk Factors” section of the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 24, 2021 and the Company’s subsequent periodic reports, and the risks and uncertainties described in other filings that the Company made or may make with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
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