October 10, 2017
HIVE Blockchain Announces $7 Million Equity Investment by Genesis Mining
Vancouver, British Columbia — 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.
President, CEO and Director
For further information please contact:
Tel: (604) 609-6110
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.