Not for distribution to U.S. news wire services or dissemination in the United States
Zug, Switzerland and Vancouver, Canada – HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (the “Company” or “HIVE”), is pleased to announce that, due to strong demand, it has entered into an amended agreement with GMP Securities L.P. on behalf of a syndicate of agents (together the “Agents”) to increase the size of its previously announced financing to 36,507,900 units of the Company (the “Units”) at a price of C$3.15 per Unit (the “Offering Price”), for aggregate gross proceeds of approximately C$115.0 million (the “Upsized Offering”). Each Unit will consist of one common share and one common share purchase warrant (a “Warrant”), with each Warrant entitling the holder to purchase one common share at a price of $3.90 until November 14, 2019.
HIVE is also pleased to announce that Genesis Mining Ltd. (“Genesis”), an insider and the largest shareholder of the Company, will be participating for 952,380 Units of HIVE for a minimum investment of approximately C$3.0 million.
The Upsized Offering will take place by way of a private placement to accredited investors in such provinces of Canada as the Agents may designate, and otherwise in those jurisdictions where the Upsized Offering can lawfully be made on a private placement basis. The securities issued under the Upsized Offering will be subject to a four month and one day hold period from the date of issue in accordance with applicable securities laws in Canada, and potentially additional restrictions under the laws of other jurisdictions in which the Upsized Offering may be made.
This news release does not constitute an offer to sell the Units in the United States or to US persons. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, and they may not be offered or sold in the United States or to a US person unless an exemption from registration is available.
The net proceeds of the Upsized Offering are expected to be used to fund the completion of the Sweden Bitcoin Data Centre and the Phase 3 Expansion at the Sweden GPU Data Centre (as described in the Company’s December 13, 2017 news release), and for general working capital purposes.
The Upsized Offering is expected to close in one or more tranches with the final closing expected to be December 29, 2017 (the “Closing Date”). Closing of the Upsized Offering is subject to certain conditions typical for a transaction of this nature and the receipt of all necessary regulatory approvals, including the 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. 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, and is in the midst of a major expansion of operations into Sweden.
For more information and to register to HIVE’s mailing list, please visit www.HIVEblockchain.com. Follow @HIVEblockchain on Twitter and subscribe to HIVE’s YouTube channel.
On Behalf Of HIVE Blockchain Technologies Ltd.
President, CEO and Director
For further information please contact:
Tel: (604) 609-6110
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 the expansion of the Company’s digital currency mining operations in Sweden (including into Bitcoin and Bitcoin Cash mining); the proposed Upsized Offering; participation of Genesis in the Upsized Offering the expected computational power and energy consumption of the Company’s digital currency mining operations; expected start date of proposed operations; 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 expansion of digital currency mining operations (including construction of planned facilities) may not occur as currently planned, or at all; the Upsized Offering may not close on the terms and timing anticipated, or at all; the quantum of computational power and electrical consumption expected by the Company in Sweden may not materialize as currently anticipated, or at all; the digital currency market; the Company’s ability to successfully mine digital currency; a decline in digital currency prices may have a significant negative impact on the Company’s operations; the volatility of digital currency prices; 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 of its expansion of digital currency operations in Sweden; the Company’s ability to close the Upsized Offering, including obtaining Exchange approval; Genesis’ participation in the Upsized Offering; 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.