Core Scientific, Inc. Announces Full Pay Down of Debtor-in-Possession Financing

Strong business performance positioned the Company to pre-pay DIP financing package ahead of planned emergence from Chapter 11 in January

AUSTIN, Texas–(BUSINESS WIRE)–$CORZQ #bitcoinCore Scientific, Inc. (OTC: CORZQ) (“Core Scientific” or the “Company”), a leader in high-performance blockchain computing data centers and software solutions, today announced it has pre-paid the outstanding balance on the debtor-in-possession (“DIP”) financing package provided by B. Riley Financial (NASDAQ: RILY), the Company’s DIP lender. The Company retains access to the full $35 million of available funding under the DIP financing package and maintains a strong liquidity position heading toward emergence, which is targeted for mid to late-January 2024.


“Our team continues to deliver outstanding performance, which translates into continued market leadership and strong cash flow generation,” said Adam Sullivan, Core Scientific’s Chief Executive Officer. “Paying off our DIP financing package at this point in the emergence process is an exceptional achievement that underscores the strength of the organization and positions us well for our planned emergence later this month.”

Revised Plan and ERO Timeline:

Event

Illustrative Date1 / Timing

Equity Rights Offering Record Date

November 16, 2023

End of Rights Offering Subscription Period/ Deadline for Funding Rights Offering Subscription Amounts

January 5, 2024

Voting Deadline

January 11, 2024

Currently Scheduled Confirmation Hearing Date

January 16, 2024

Anticipated Plan Distribution Record Date for Existing Convertible Notes

TBD2

Anticipated Plan Effective Date

Anticipated Plan Distribution Record Date for Existing Common Shares

TBD

(expected mid to late-January 2024)

Nasdaq Listing

Expected at or shortly after emergence

_________________

1
The timeline in this table is illustrative and assumes a consensual Plan. Actual dates will depend on the Court’s calendar and discretion, the status of negotiations with stakeholders, and stakeholder views on appropriate deadlines

2 2 business days before Anticipated Plan Effective Date

This press release is solely for informational purposes. Investors should not rely upon it or use it to form the definitive basis for any decision or action whatsoever, with respect to any proposed transaction or otherwise. Investors should read the Plan and the related Disclosure Statement, each as amended or supplemented, which are available (i) on the website of Stretto, the Company’s voting and solicitation agent, at https://cases.stretto.com/corescientific/, (ii) by calling Stretto at (949) 404-4152 (in the U.S. and Canada; toll-free) or +1 (888) 765-7875 (outside of the U.S. and Canada), or (iii) by sending an electronic mail message to [email protected].

This press release is for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy any security.

ABOUT CORE SCIENTIFIC

Core Scientific (OTC: CORZQ) is one of the largest blockchain computing data center providers and miners of digital assets in North America. Core Scientific has operated blockchain computing data centers in North America since 2017, using its facilities and intellectual property portfolio for colocated digital asset mining and self-mining. Core Scientific operates data centers in Georgia, Kentucky, North Carolina, North Dakota and Texas. Core Scientific’s proprietary Minder® fleet management software combines the Company’s colocation expertise with data analytics to deliver maximum uptime, alerting, monitoring and management of all miners in the Company’s network. To learn more, visit http://www.corescientific.com.

FORWARD LOOKING STATEMENTS AND EXPLANATORY NOTES

Certain statements in this press release constitute “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the anticipated date of Company emergence from Chapter 11. These forward-looking statements are not intended to serve, and must not be relied on by any investor, as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are based on information available as of the date of this press release and current expectations, forecasts and assumptions and are subject to a number of risks and uncertainties, including, but not limited to, the Company’s ability to obtain bankruptcy court approval with respect to motions in its Chapter 11 cases, successfully enter into and implement a restructuring plan, emerge from Chapter 11 and achieve significant cash flows from operations; the effects of the Chapter 11 cases on the Company and on the interests of various constituents, bankruptcy court rulings in the Chapter 11 cases and the outcome of the Chapter 11 cases in general, the length of time the Company will operate under the Chapter 11 cases, risks associated with any third-party motions in the Chapter 11 cases, the potential adverse effects of the Chapter 11 cases on the Company’s liquidity or results of operations and increased legal and other professional costs necessary to execute the Company’s reorganization; satisfaction of any conditions to which the Company’s debtor-in-possession financing is subject and the risk that these conditions may not be satisfied for various reasons, including for reasons outside of the Company’s control; the consequences of the acceleration of the Company’s debt obligations; the trading price and volatility of the Company’s common stock as well as other risk factors set forth in the Company’s reports filed with the U.S. Securities & Exchange Commission. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Accordingly, undue reliance should not be placed upon the forward-looking statements.

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