VANCOUVER, Nov. 14, 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, including the exercise in full of the
Underwriters' (as hereinafter defined) option. A total of
12,322,250 units (the "Units") were sold at a price of C$2.80 per Unit for aggregate gross proceeds of
$34,502,300 (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"). Each Unit consists of one common share (a "Share")
and one Share purchase warrant (a "Warrant"), with each Warrant
entitling the holder to purchase one Share at a price of
$3.90 until November 14, 2019. The Shares and the Warrants
issued under the Offering are subject to a hold period expiring
March 15, 2018. In connection with
the Offering, the Underwriters received a cash commission equal to
6% of the gross proceeds raised in the Offering, excluding any
proceeds raised from Genesis Mining Ltd. ("Genesis").
The net proceeds of the Offering are to be used to fund the
second phase of construction at the digital currency mining data
centre in Sweden (as described in
more detail below) and for general working capital purposes.
Genesis, an insider of the Company, subscribed for C$5,090,904 of the Offering, in accordance with
the terms of an investor rights agreement between Genesis and the
Company.
Proposed Listing of Warrants
The Company further announces it is taking steps to seek to list
for trading on the TSX Venture Exchange (the "Exchange") the
Warrants issued pursuant to the Offering (the "Listing"). The
Company anticipates that the Listing will be effective on or after
March 15, 2018 when the hold period
expires. In preparation for the Listing, the Company has entered
into a warrant indenture with Computershare Trust Company
of Canada, as warrant agent.
Sweden Data Centre
On October 23, 2017 and
October 25, 2017, HIVE entered into
legally binding letter agreements with its largest shareholder
Genesis under which the Company will finance the construction of
the first and second phases of digital currency mining rigs at a
data centre in Sweden (the "Sweden
Data Centre"). Please refer to the Company's October 23, 2017 and October 25, 2017 news releases for more
details.
The Sweden Data Centre will consist of newly constructed GPU
mining rigs using the latest hardware, custom-designed by Genesis.
Each phase is expected to represent approximately 6.8 MW of
electricity consumption for a total of 13.6 MW in Sweden. HIVE and Genesis are evaluating
expansion potential in Sweden as
well as Iceland. In Iceland, HIVE's current operating facilities
represent 3.8 MW in electricity consumption. Completion of the
Sweden Data Centre is subject to a number of conditions, including
but not limited to, Exchange approval.
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. to build the next generation of blockchain
infrastructure. HIVE owns state-of-the-art GPU-based digital
currency mining facilities in Iceland, which produce mined digital currency
like Ethereum around the clock.
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
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
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 construction and acquisition of the
Sweden Data Centre; the expected electrical consumption at the
Sweden Data Centre; the possible listing of the Warrants on the
Exchange; 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, the construction, acquisition and operation
of the Sweden Data Centre; the ongoing partnership with Genesis;
the quantum of electrical consumption at the Sweden Data Centre may
not materialize as currently anticipated; the digital currency
market; the Company's ability to successfully mine digital
currency; 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
ability to complete the construction and acquisition of the
Sweden Data Centre; the listing of the Warrants; the Company's
ongoing partnership with Genesis; historical prices of digital
currencies and the ability of the Company to mine digital
currencies 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.