Voyager Digital provides market update

NEW YORK, June 22, 2022 /PRNewswire/ – Voyager Digital Ltd. (“Voyager” or the “Company”) (TSX: VOYG) (OTCQX: VYGVF) (FRA: UCD2) today announced that its subsidiary, Voyager Digital Holdings, Inc. (“VDH”), has entered into a definitive agreement with Alameda Ventures Ltd. (“Alameda”) related to the previously disclosed credit facility, which aims to help Voyager meet customers’ liquidity needs during this dynamic period.

VDH entered into a definitive agreement with Avenue for $200 million USDC cash and revolver and a 15,000 BTC revolver (the “Loan”). As previously disclosed, the facility’s proceeds are intended to be used to safeguard clients’ assets in light of current market volatility and only if such use is necessary. In addition to this facility, from June 20, 2022Voyager has approx. US$ 152 million cash and crypto assets held in hand, as well as approximately $20 million of money that is restricted to the purchase of USDC.

from Alameda obligation to provide funding is subject to certain conditions, which include: no more than $75 million can be withdrawn in any period of 30 consecutive days; the Company’s corporate debt must be limited to approximately 25% of the client’s assets on the platform, less US$ 500 million; and additional funding sources must be secured within 12 months. This is a summary of the loan terms; a copy of the loan agreement will be on file at http://www.sedar.com.

Voyager simultaneously announced that its operating subsidiary, Voyager Digital, LLC, may issue a default notice to Three Arrows Capital (“3AC”) for defaulting on its loan. Voyager’s exposure to 3AC consists of 15,250 BTC and US$ 350 million USDC The Company made an initial claim for reimbursement of $25 million USDC per June 24, 2022and later requested a refund of the entire USDC and BTC balance for June 27, 2022. None of these amounts have been refunded and 3AC’s failure to refund any amounts requested by these specified dates will constitute an event of default. Voyager intends to seek the recovery of 3AC and is in discussions with the Company’s advisors about available legal remedies. The Company cannot assess at this time the amount it can recover from 3AC.

Avenue currently indirectly holds 22,681,260 common shares of Voyager (“Common Shares”), representing approximately 11.56% of the outstanding common and variable voting shares. The Loan is considered a “related party transaction” pursuant to Multilateral Instrument 61-101 – Protection of Minority Holders in Special Operations (“MI 61-101”). Voyager is relying on the exemption available in Section 5.7(1)(f) from the MI 61-101 minority shareholder approval requirement. In addition, the Loan is exempt from the formal assessment requirement of MI 61-101 pursuant to Section 5.4(1) of MI 61-101. The Loan Agreement was approved by Voyager’s Board of Directors.

About Voyager Digital Ltd.

Voyager Digital Ltd. (TSX: VOYG) (OTCQX: VYGVF) (FRA: UCD2) US subsidiary Voyager Digital, LLC is a cryptocurrency platform in the United States founded in 2018 to bring choice, transparency and cost efficiency to the market. Voyager offers a secure way to trade over 100 different crypto assets using its easy-to-use mobile app. Through its subsidiary Coinify ApS, Voyager provides cryptographic payment solutions to consumers and merchants worldwide. To learn more about the company, visit https://www.investvoyager.com.

Forecast statements

Certain information in this press release, including, but not limited to, statements about future business growth and performance, business momentum, future adoption of digital assets, the terms of the terms sheet and any definitive loan documentation and the forecast of the Company’s results may constitute forward-looking information (collectively, forward-looking statements), which can be identified by the use of terms such as “may”, “will”, “should”, “expect”, “anticipate”, “project”, “estimate” , “intend”, “continue” or “believe” (or the negatives) or other similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause Voyager’s actual results, performance or achievements to differ materially from any of its future results, performance or achievements expressed or implied in the forward-looking statements. In addition, we operate in a very competitive and rapidly changing environment. New risks arise from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, could cause actual results to differ materially from those contained in any forward-looking statements. look that we can do. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results may differ materially and adversely from those anticipated or implied by the forward-looking statements. There is no guarantee that the funds available under the loan agreement will be available in a timely manner or, even if available, together with any other Voyager assets, will be sufficient to protect the customer’s assets. It is uncertain what amount Voyager will be able to recover from 3AC for non-payment or the legal remedies available to Voyager in connection with such non-payment or the impact on Voyager’s future business, cash flows, liquidity and prospects as a result of non-payment. of 3AC. Forward-looking statements are subject to the risk that the global economy, industry or the Company’s business and investments will not perform as expected, that estimates of income or expenses will not be met or may be substantially lower or higher than anticipated, that the parties to whom the Company lends assets are able to repay these loans in full and in a timely manner, that business momentum does not continue or demand for business solutions declines, customer acquisition does not increase as planned, product and expansion international do not occur as planned, risks of compliance with laws and regulations that currently apply or become applicable to the business and those other risks contained in the Company’s public files, including its Management Review and Discussion and its Annual Information Form (AIF). Factors that could cause the actual results of the Company and its business to differ materially from those described in such forward-looking statements include, but are not limited to, a decline in the digital asset market or general economic conditions; changes in regulatory laws or approaches, failure or delay in the adoption of digital assets and the blockchain ecosystem by institutions; changes in cryptocurrency volatility, changes in demand for Bitcoin and Ethereum, changes in the status or classification of cryptocurrency assets, cybersecurity breaches, delay or failure in developing infrastructure for the trading business or fulfilling mandates, and gaining strength ; failure to increase assets under management, an adverse development in relation to an issuer or part of the transaction, or failure to obtain the necessary regulatory approval. Readers are cautioned that the Assets on the Platform and trading volumes fluctuate and may increase and decrease from time to time and that such fluctuations are beyond the Company’s control. Forward-looking statements, past and present performance and trends are not guarantees of future performance, therefore, you should not place undue reliance on forward-looking statements, current or past performance, or current or past trends. Information identifying assumptions, risks and uncertainties relating to the Company is contained in its filings with Canadian securities regulators available at www.sedar.com. The forward-looking statements in this press release apply only as of the date of this release or as of the date specified in the relevant forward-looking statement, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unforeseen events, except as required by law. The Company assumes no obligation to provide operational updates, except as required by law. If the Company updates one or more forward-looking statements, it should not be inferred that it will make additional updates with respect to those or other forward-looking statements, unless required by law. Readers are cautioned that past performance is not indicative of future performance and current trends in business and demand for digital assets may not continue and readers should not place undue reliance on past performance and current trends. There is no guarantee that the transactions contemplated by the non-binding commitment will be completed or, if completed, will take place on the agreed terms. There is no guarantee that the funds available under the loan agreement will be available or, even if available, together with any other Voyager assets, will be sufficient to protect the customer’s assets.

TSX has not approved or disapproved of the information contained herein.

SOURCE Voyager Digital Ltd.

Leave a Reply

%d bloggers like this: