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.
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.
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.
For further information: Harry Pokrandt, Tel: (604) 609-6110