Vulcan, a crypto miner formerly known as Greenidge Generation, warned of a potential default if its $39.4 million PIPE does not close before Oct. 31 notes mature. The filing showed $9.2 million in cash and digital assets against $33.1 million in debt. The next deadline is Oct. 10.
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Vulcan, the crypto miner formerly known as Greenidge Generation, warned it faces a potential default or bankruptcy filing if its proposed $39.4 million financing package does not close in time to cover $33.1 million in senior notes due Oct. 31.
The warning came in an Aug. 14 quarterly filing. The company said it intended to use the proceeds from a private investment in public equity, or PIPE, to redeem the notes. As of Aug. 16, that PIPE had not closed. No proceeds had been received and no securities had been issued, the filing said.
At June 30, Vulcan held $3.197 million in cash and $6.027 million in digital assets, for a combined $9.2 million. The note principal stood at $33.138 million, leaving a gap of roughly $23.9 million. The company's projected operating cash flow alone would not meet its existing debt service, the filing said.
The PIPE is led by Machine Investment Group and affiliates of Atlas Holdings. Under the July agreements, Vulcan would sell 17,146,190 shares at $1.71 each, raising about $29.3 million. It would also issue a $10 million convertible note to Machine Investment Group. Net proceeds are estimated at $37.7 million, of which $33.1 million would go to the note redemption and $1.4 million to contractual interest.
Closing remains subject to multiple conditions, the filing said. Nasdaq must approve the listing of the new shares. Transaction and collateral documents must be delivered. Stockholder consent is needed, and gross proceeds must reach at least $30 million. The agreements include an outside date of Oct. 10, meaning either side may terminate if closing has not occurred by then. That is 21 days before the notes mature.
The note terms require payment of principal and final scheduled interest on Oct. 31. An optional early redemption requires 10 to 60 calendar days' notice. The company's Aug. 14 release said it intended to redeem the notes, the filing said. That release was not a redemption notice.
A separate exchange completed during the second quarter reduced about $3.6 million of the old notes, bringing the total from $36.9 million. In return, Vulcan issued $1.4 million of new notes due 2030 and 1,277,111 shares. That transaction is done. The larger October reduction remains conditional.
If the PIPE does not close, the company said it would need another financing source, a maturity extension, restructuring, asset sales, or another alternative. Failure to secure one could result in a default. The quarterly filing said a default may require restructuring, potentially including bankruptcy protection.
The Oct. 10 outside date is the next hard deadline to watch. Until the PIPE closes, the planned debt reduction remains contingent.
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