{"url_path":"/sec/wyfi/10-q/2026/item-2","section_key":"item-2","section_title":"Item 2 Unregistered Sales of Equity Securities","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/2042022/0001213900-26-056212-index.html","accession_number":"0001213900-26-056212","cik":"0002042022","ticker":"WYFI","issuer_name":"WhiteFiber, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/2042022/0001213900-26-056212-index.html","primary_entity_key":"0002042022","primary_entity_name":"WhiteFiber, Inc."},"word_count":1209,"has_tables":true,"body_markdown":"Item 2. Unregistered Sales of Equity Securities\nand Use of Proceeds\n\n \n\nRecent Sales of Unregistered Securities\n\n \n\nOn January 26, 2026, we completed a private\noffering of $230.0 million aggregate principal amount of 4.500% Convertible Senior Notes due 2031 (the “2031 Notes”),\nincluding the exercise in full of the initial purchasers’ option to purchase an additional $20.0 million aggregate principal\namount of 2031 Notes. The 2031 Notes are general senior unsecured obligations of the Company. The 2031 Notes were issued pursuant to\nan Indenture, dated January 26, 2026 (the “Indenture”), between the Company and U.S. Bank Trust Company, National\nAssociation, as trustee (the “Trustee”). The 2031 Notes will mature on February 1, 2031 (the “Maturity\nDate”), unless earlier converted, redeemed or repurchased. The 2031 Notes will bear interest at a rate of 4.500% per year,\npayable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2026. Holders may convert their 2031\nNotes at their option prior to the close of business on the second scheduled trading day immediately preceding the Maturity Date.\nUpon conversion, the Company will satisfy its conversion obligation by paying or delivering, as the case may be, cash, its Ordinary\nShares, or a combination of cash and Ordinary Shares, at the Company’s election, in the manner and subject to the terms and\nconditions set forth in the Indenture. The conversion rate is initially 38.5981 ordinary shares per $1,000\nprincipal amount of the 2031 Notes (equivalent to an initial conversion price of approximately $25.91 per ordinary share), which represents\nan approximately 27.5% conversion premium over the last reported sale price of $20.32 per ordinary share on the Nasdaq Capital Market\non January 21, 2026. The conversion rate is subject to customary adjustments upon the occurrence of certain events, as described in the\nIndenture.\n\n \n\nOn February 6, 2029, and if the Company undergoes\na “Fundamental Change” (as defined in the Indenture), then, subject to certain conditions and except as set forth in the Indenture,\nnoteholders may require the Company to repurchase for cash all or any portion of their 2031 Notes at a repurchase price equal to 100%\nof the principal amount of the notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the relevant repurchase\ndate.\n\n \n\nThe Company may not redeem the 2031 Notes prior\nto February 6, 2029. The Company may redeem for cash all or any portion of the 2031 Notes, at our option, on or after February 6, 2029\nand prior to the 41st scheduled trading day immediately preceding the maturity date, if the last reported sale price of our\nordinary shares has been at least 130% of the conversion price for the 2031 Notes then in effect for at least 20 trading days (whether\nor not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including,\nthe trading day immediately preceding the date on which the Company provides notice of optional redemption. However, the Company may not\nredeem less than all of the outstanding 2031 Notes at its option unless at least $75.0 million aggregate principal amount of 2031 Notes\nare outstanding and not called for optional redemption as of the time it sends the related notice of optional redemption (and after giving\neffect to the delivery of such notice of optional redemption). The Company may also redeem for cash, in whole but not in part, the 2031\nNotes, subject to certain conditions, upon the occurrence of certain changes to the laws, rules or regulations of a relevant taxing jurisdiction\n(as defined in the Indenture). The redemption price is equal to 100% of the principal amount of the 2031 Notes to be redeemed, plus accrued\nand unpaid interest to, but excluding, the redemption date.\n\n \n\n53\n\n \n\nIn connection with the issuance of the 2031\nNotes, the Company entered into a privately negotiated zero-strike call option transaction with Barclays Bank PLC, through its agent\nBarclays Capital Inc. (the “Option Counterparty” and, such transaction, the “Call Option Transaction”), with\nan expiration date that is scheduled to occur shortly after the Maturity Date. Pursuant to the Call Option Transaction, the Company\npaid a premium equal to approximately $120.0 million for the right to receive, without further payment, 5,905,511 Ordinary Shares\n(subject to customary adjustment), with delivery thereof by the Option Counterparty at expiry, subject to early settlement of the\nCall Option Transaction in whole or in part at the Option Counterparty’s discretion.\n\n \n\nThe net proceeds from the sale of the 2031 Notes were approximately\n$222.1 million, after deducting the initial purchasers’ discounts and offering expenses payable by the Company. The Company used\napproximately $120.0 million of the net proceeds from the 2031 Notes to pay the cost of the Call Option Transaction. The remaining net\nproceeds are expected to be used primarily for data center expansion, including to partially fund the lease or purchase of additional\nproperty or properties on which to build additional WhiteFiber data centers, to construct those facilities, to enter into additional energy\nservice agreements for each additional site, to purchase related equipment, and for potential acquisitions, partnerships and joint ventures\nrelated thereto, and for working capital and general corporate purposes.\n\n \n\nThe Company offered and sold the Notes to the\ninitial purchasers in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act and the Notes were\ninitially resold by the initial purchasers to persons whom the initial purchasers reasonably believed to be qualified institutional buyers\npursuant to the exemption from registration provided by Rule 144A under the Securities Act. The Company relied on these exemptions from\nregistration based in part on representations made by the initial purchasers in purchase agreement, dated January 21, 2026, by and among\nthe Company and the representatives of the initial purchasers named therein. The Notes and the Ordinary Shares issuable upon conversion\nof the Notes, if any, have not been registered under the Securities Act and may not be offered or sold in the United States absent registration\nor an applicable exemption from registration requirements. To the extent that any Ordinary Shares are issued upon conversion of the Notes,\nthey will be issued in transactions anticipated to be exempt from registration under the Securities Act by virtue of Section 3(a)(9)\nthereof, because no commission or other remuneration is expected to be paid in connection with conversion of the Notes, and any resulting\nissuance of Ordinary Shares. Initially, a maximum of 11,318,898 Ordinary Shares may be issued upon conversion of the Notes based on the\ninitial maximum conversion rate of 49.2126 Ordinary Shares per $1,000 principal amount of the Notes, which is subject to customary anti-dilution\nadjustment provisions.\n\n \n\nUse of Proceeds\n\n \n\nOn August 6, 2025, our registration statement\non Form S-1 (File No. 333-288650) (the “Registration Statement”) for our IPO was declared effective by the SEC. There has\nbeen no material change in the expected use of the net proceeds from our IPO as described in our Registration Statement. As of March 31,\n2026, the Company had expended approximately $246.5 million of the net proceeds of the IPO for the construction of plant, building and\nfacilities, $45.9 million for the purchase and installment of machinery and equipment, and $0.2 million for real estate.\n\n \n\n54"}