VANCOUVER,
Oct. 11, 2017
/CNW/ - HIVE Blockchain Technologies Ltd.
(TSX.V:HIVE) (the "Company" or "HIVE") is pleased to announce that
it has closed its previously announced bought deal private
placement. A total of 20,000,000 common shares (the "Shares") were
sold at a price of C$1.50 per Share
for aggregate gross proceeds of $30,000,000 (the "Offering"). The 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. (collectively, the "Underwriters"). All of
the Shares issued under the Offering are subject to a hold period
expiring February 12, 2018. In
connection with the Offering, the Underwriters received a cash
commission equal to 6% of the gross proceeds raised in the
Offering. The net proceeds of the Offering are to be used for the
purchase of the Second Data Centre (as defined below) and for
general working capital purposes.
Concurrently, the Company completed a non-brokered private
placement of 4,666,667 common shares at C$1.50 per common share for gross proceeds of
$7,000,000 (the "Private Placement")
in accordance with the terms of an investor rights agreement
between the Company and Genesis Mining Ltd. ("Genesis"), an insider
of the Company. The shares issued under the Private Placement are
subject to a hold period expiring February
12, 2018. 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 Offering, the
Company has completed the purchase of additional cryptocurrency
mining equipment located in Reykjanes, Iceland (the "Second Data Centre") from
Genesis. Pursuant to a master services agreement between the
Company and Genesis (the "MSA"), 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.
Stock Option Grant
The Company announces that it has granted an aggregate of
2,000,000 stock options under the Company's stock option plan to
consultants and employees of the Company with an exercise price of
C$2.00 per stock option, exercisable
for a period of ten years from the date of grant, subject to
approval of the TSX Venture Exchange (the "Exchange"). The Company
has also granted an aggregate of 666,666 stock options to an
investor relations provider with an exercise price of C$2.00 per stock option, exercisable for a period
of five years from the date of grant, vesting over the period of
three years, subject to approval of the Exchange.
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 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
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.
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 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.
SOURCE HIVE Blockchain Technologies Ltd.