Closes $2.075M Non-Brokered Private Placement with
Insider Participation
VANCOUVER, BC, Oct. 27, 2021 /CNW/ - Network Media Group
Inc. (TSXV: NTE) (OTCMKTS: NETWF) ("Network" or the
"Company") is pleased to announce that it has received a
strategic investment from HIVE Blockchain Technologies Ltd.,
(NASDAQ: HIVE) (TSX.V: HIVE) and U.S. Global investors inc.,
(NASDAQ: GROW) and closed its previously announced non-brokered
private placement (the "Offering") described in the news releases
on September 30, 2021, October 4, 2021, and October 18, 2021. In connection with the closing
of the Offering, the Company issued 13,833,333 common Shares of the
Company (the "Shares") at a price of $0.15 per Share for gross proceeds of
$2,075,000.
"As a leader in digital assets and blockchain technologies, we
recognize and embrace the NFT revolution and this transformative
digital marketplace that is growing at a rapid pace. Network's
creative leadership and reputation as producers of premium content
for global audiences, alongside their access to valued intellectual
property, presented the perfect opportunity to forge a strategic
relationship to embrace the NFT revolution together," said
Frank Holmes, Chairman of HIVE
Blockchain Technologies.
"This is a defining moment for Network, as we add a new
dimension to our established reputation creating premium content in
the pop culture universe. We are excited to welcome Frank Holmes and HIVE Blockchain as a dynamic
new shareholder. HIVE'S reputation and expertise as a blockchain
industry leader is a compelling endorsement for Network and our
vision to embrace the NFT digital ecosystem. Our team is inspired
to create dynamic digital content for this emerging NFT ecosystem
utilizing past, current, and future intellectual property with the
intention being to revolutionize the monetization of premium
content," said Derik Murray, Founder
and CEO of Network.
Network Chairman, Ali Pejman
added, "Over the course of the past 10 years, Network has
meticulously established itself as a trusted storyteller and
partner to some of world's foremost broadcasters, streamers,
distributors, and A-list talent. The Company will continue to build
on that momentum, now adding NFTs to its visionary content creation
and production pipeline. It is an exciting inflection point of
content and technology, and we are pleased to have Frank Holmes and HIVE Blockchain supporting this
exciting new dimension of our business," said Ali Pejman,
Certain insiders of the Company acquired Shares in the Offering.
This participation by insiders in the Offering constitutes a
"related party transaction" as defined under Multilateral
Instrument 61-101 Protection of Minority Security Holders in
Special Transactions ("MI 61-101"). However, the Company
considers such participation to be exempt from the formal valuation
and minority shareholder approval requirements of MI 61-101 as
neither fair market value of the Shares subscribed for by the
insiders, nor the consideration for the Shares paid by such
insiders, will exceed 25% of the Company's market
capitalization.
Network will use the net proceeds of the Offering primarily for
ancillary business opportunities, operations, research, and
development of NFT content initiatives, and working capital
requirements.
The securities issued under the Offering are subject to a
statutory hold period, expiring February 28,
2022, being four months and one day from the date of
issuance of such securities. The Offering is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals, including the final approval of the TSX
Venture Exchange and the applicable securities regulatory
authorities.
Network also announces today that it has granted incentive stock
options to certain directors, officers, employees, and consultants
for the right to purchase an aggregate of 690,000 Common Shares of
the Company. These options are exercisable at a price of
$0.16 per Share for a term of five
(5) years. The terms of the options granted are in accordance
with the Company's Fixed Share Option Plan as approved by its
shareholders on October 10,
2019. The option grants are subject to TSX Venture Exchange
approval.
About Network Entertainment
Network Media Group is
the parent company of Network Entertainment Inc.
Network
Entertainment is a creatively driven, boutique film and television
production company that creates, finances, and produces
award-winning programming for television, digital platforms, and
movie audiences around the world. The Network premium brand of
content delivers world-class casts and features visually cinematic,
richly crafted storytelling. The Company's productions are
consistently embraced by both audiences and critics alike,
garnering awards, record ratings and unparalleled media coverage
for Network and its partners.
The Company's most recent productions include PUNK,
a four-part series for EPIX with executive producers John Varvatos and Iggy
Pop, the feature documentaries I Am Richard
Pryor, which premiered at the SXSW Film Festival,
and I Am Patrick Swayze, which premiered at
the San Antonio Film Festival, winning the Festival Grand
Prize, and The Age of A.I., a YouTube Originals
series hosted and executive produced by Robert Downey Jr.
Among the Company's many accolades, Network was named to the
Realscreen Global 100 List, an annual compilation of the best
global production companies working in the non-fiction and
unscripted visual content industry. Network's work has also been
recognized by the Academy Awards, the Emmys, Realscreen Awards,
Gemini Awards, Leo Awards, the Los
Angeles Film Festival, AFI Docs Film Festival (Silverdocs),
San Antonio Film Festival,
Seattle International Film
Festival, Tribeca Film Festival, SXSW Film Festival, Hawaii
International Film Festival, Houston International Film Festival, Vancouver
International Film Festival, Banff Television Festival, and
the International Film and Television Festival of New York.
Network's broadcast and distribution partners include A&E,
AHC, AMC, AppleTV+, Discovery Channel, CBC, CMT, Crave, CTV,
Entertainment One, EPIX, Fremantle, HBO Canada, History Channel,
iTunes, Lionsgate, National Geographic, NBC Peacock, Paramount
Network, Sky, Sundance TV, Thunderbird, TMN, Virgil Entertainment,
and YouTube Originals.
Network's offices, production and post production facilities are
located in Vancouver and
Los Angeles, and the company is
represented by ICM Partners.
For additional information on Network Entertainment Inc.,
visit www.networkentertainment.ca
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statement on Forward-looking
Information
Except for historical information
contained herein, this news release contains forward-looking
statements that involve risks and uncertainties. These statements
are necessarily based upon management's perceptions, beliefs,
assumptions and expectations, as well as a number of specific
factors and assumptions that, while considered reasonable by
management of the Company as of the date of such statements are
inherently subject to significant uncertainties and contingencies
that could result in the forward-looking information ultimately,
perhaps materially, being incorrect. All forward-looking
information in this news release involve known and unknown risks,
uncertainties and other factors that are beyond the control of the
Company and may cause the actual results, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking information. Except as
required pursuant to applicable securities laws, the Company will
not update these forward-looking statements to reflect events or
circumstances after the date hereof.
About HIVE Blockchain Technologies
Ltd.
HIVE Blockchain Technologies Ltd. went
public in 2017 as the first cryptocurrency mining company with a
green energy and ESG strategy.
HIVE is a growth-oriented technology stock in the emergent
blockchain industry. As a company whose shares trade on a major
stock exchange, we are building a bridge between the digital
currency and blockchain sector and traditional capital markets.
HIVE owns state-of-the-art, green energy-powered data centre
facilities in Canada, Sweden, and Iceland, where we source only green energy to
mine on the cloud and HODL both Ethereum and Bitcoin. Since the
beginning of 2021, HIVE has held in secure storage the majority of
its ETH and BTC coin mining rewards. Our shares provide investors
with exposure to the operating margins of digital currency mining,
as well as a portfolio of cryptocurrencies such as ETH and BTC.
Because HIVE also owns hard assets such as data centers and
advanced multi-use servers, we believe our shares offer investors
an attractive way to gain exposure to the cryptocurrency space.
HIVE traded over 2 billion shares in 2020.
We encourage you to visit HIVE's YouTube
channel here to learn more about HIVE.
For more information and to register to HIVE's mailing list,
please
visit http://www.HIVEblockchain.com. Follow @HIVEblockchain
on Twitter and subscribe to HIVE's YouTube channel.
About U.S. Global Investors, Inc.
The
story of U.S. Global Investors goes back more than 50 years when it
began as an investment club. Today, U.S. Global Investors, Inc.
(www.usfunds.com) is a registered investment adviser that focuses
on niche markets around the world. Headquartered in San Antonio, Texas, the Company provides money
management and other services to U.S. Global Investors Funds and
U.S. Global ETFs.
SOURCE Network Media Group Inc.