Hive Blockchain Closes $30 Million Financing, Completes $7 Million Investment by Genesis Mining, and Acquires 2nd Data CentreWednesday, October 11, 2017
Vancouver, BC, October 11, 2017--(T-Net)--HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) announced today that it has closed a bought deal private placement financing for aggregate gross proceeds of $30 million.
A total of 20,000,000 common shares were sold at a price of C$1.50 per Share.
Hive's mission is to accelerate the development of the blockchain sector through traditional capital markets and create long-term shareholder value. HIVE is strategically partnered with Genesis Mining Ltd., a leading cryptocurrency mining hashrate provider, to build the next generation of blockchain infrastructure.
HIVE owns a state-of-the-art GPU-based cryptocurrency mining facility in Iceland, completed in May 2017, which produces mined cryptocurrency like Ethereum around the clock.
HIVE has an option to acquire four additional facilities in Iceland or Sweden from Genesis. Genesis supports HIVE with data centre infrastructure know-how and is HIVE's largest shareholder.
Harry Pokrandt, CEO, President, and Director
Hive is led by Harry Pokrandt, CEO, President, and Director. Harry has extensive contacts and experience in Canada's capital markets. He served as Managing Director of Macquarie Capital Markets Canada Ltd. from 1985 to 2015 and as Managing Director of Espresso Capital from 2015 to 2017, investing in and advising startups in the technology and natural resources sectors.
Frank Giustra, CEO, FIORE GROUP
HIVE is the culmination of an exclusive partnership between Genesis Mining, the world's largest cloud bitcoin mining company with over a million customers, and Fiore Group, a leading Canadian merchant banking firm with a track record of success (and led by well known businessman Frank Giustra (former president of Yorkton Securities and former President, CEO and Chairman of Lions Gate Entertainment)).
The $30 million Offering was underwritten by a syndicate of underwriters led by GMP Securities L.P. and included Haywood Securities Inc., Eventus Capital Corp, and PI Financial Corp.
The net proceeds of the Offering are to be used for the purchase of a Second Cryptocurrency Data Centre (as defined below) and for general working capital purposes.
Concurrently, the Company also completed an additional non-brokered private placement of 4,666,667 common shares at C$1.50 per common share for gross proceeds of $7 million in accordance with the terms of an investor rights agreement between the Company and Genesis Mining Ltd., an insider of the Company.
The net proceeds of the Private Placement are expected to be used for general working capital purposes.
Acquisition of Second Data Centre
Concurrently with the completion of the financing, the Company has completed the purchase of additional cryptocurrency mining equipment located in Reykjanes, Iceland from Genesis.
Pursuant to a master services agreement between the Company and Genesis, Genesis is responsible for hosting, maintenance and related services for the Second Data Centre.
The Second Data Centre was acquired from Genesis for consideration of C$5,000,000 and the issuance of 2,000,000 common shares of the Company, as well as a revision of the monthly fees payable to Genesis pursuant to the MSA to support the Second Data Centre.
The Company's cryptocurrency mining capacity or hashpower is expected to increase by over 70% with the addition of the Second Data Centre. The Company will also pay a success fee of 40,000 common shares in connection with the acquisition.
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. is a growth oriented, TSX.V-listed company building a bridge from the blockchain sector to traditional capital markets.
HIVE is strategically partnered with Genesis Mining Ltd., the world's leading cryptocurrency mining hashrate provider, to build the next generation of blockchain infrastructure. HIVE owns state-of-the-art GPU-based cryptocurrency mining facilities in Iceland, which produce mined cryptocurrency like Ethereum around the clock. HIVE has an option to acquire additional facilities in Iceland or Sweden from Genesis.
Genesis supports HIVE with data centre infrastructure know-how and is HIVE's largest shareholder.
For more information please visit www.HIVEblockchain.com or contact Harry Pokrandt, Tel: (604) 609-6110.
The TSX Venture Exchange has in no way passed upon the merits of the acquisition and has neither approved nor disapproved the contents of this news release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes information about the use of proceeds for the Offering and Private Placement; the increase of hashpower as a result of the acquisition of the Second Data Centre; the business goals and objectives of the Company, and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, risks related to the operation of the Second Data Centre; the ongoing partnership with Genesis; hashpower may not increase as currently anticipated; the cryptocurrency market; the Company's ability to successfully mine cryptocurrency; and other related risks as more fully set out in the Filing Statement of the Company dated September 13, 2017.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ongoing partnership with Genesis; historical prices of cryptocurrencies and the ability of the Company to mine cryptocurrencies will be consistent with historical prices; and there will be no regulation or law that will prevent the Company from operating its business. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
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