VANCOUVER, Oct. 10, 2017 /CNW/ - HIVE Blockchain
Technologies Ltd. (TSX.V:HIVE) (the "Company" or
"HIVE") is pleased to announce that Genesis Mining Ltd.
("Genesis") has partially exercised its participation right
pursuant to an investor rights agreement (as described below) and
will be purchasing 4,666,667 shares of HIVE at C$1.50 per share (the "Genesis Purchase") for a
total investment of C$7,000,000.
The Company announced a $30
million bought deal financing (the "Offering") on
September 21, 2017. Under the terms
of an investor rights agreement between HIVE and Genesis, Genesis
has the right to maintain up to its 30% ownership of the Company
post-Offering. Genesis has elected to proceed with the Genesis
Purchase which will result in Genesis maintaining an approximate
30% interest in HIVE.
The Genesis Purchase will be completed as a non-brokered private
placement (the "Private Placement") and is expected to close on
October 11, 2017, subject to approval
of the TSX Venture Exchange (the "Exchange"). The shares issued
under the Private Placement will be subject to a hold period of
four months and one day. The net proceeds of the Private Placement
are expected to be used for general working capital purposes.
"We welcome the financial support of Genesis Mining, the leading
cryptocurrency mining hashpower provider with over a million
customers, in addition to the invaluable expertise they are already
providing," commented Harry
Pokrandt, President, CEO and a Director at HIVE. "Genesis
shares our vision to rapidly develop HIVE into a major player in
the cryptocurrency mining space, leveraging traditional capital
markets."
"We strongly believe in the success of HIVE and think there is a
lot of growth potential from where we are now," commented
Marco Streng, Co-Founder of Genesis
Group.
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 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
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 and to register to HIVE's mailing list,
please visit www.HIVEblockchain.com, which has recently been
updated. Follow @HIVEblockchain on Twitter and subscribe to HIVE's
YouTube channel.
On Behalf Of HIVE Blockchain Technologies Ltd.
"Harry Pokrandt"
President, CEO and Director
Closing of the Genesis Purchase is subject to a number of
conditions, including but not limited to, acceptance by the
Exchange. There can be no assurance that the Genesis Purchase will
be completed as proposed or at all.
The Exchange has in no way passed upon the merits of the
Genesis Purchase and has neither approved nor disapproved the
contents of this news release. Neither the 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.
Forward-Looking Information
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 Genesis Purchase; the use of
proceeds for the Genesis Purchase; 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 closing of the Genesis
Purchase; 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 the
ability to close the Genesis Purchase, including Exchange approval;
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.
SOURCE HIVE Blockchain Technologies Ltd.