HIVE Blockchain closes $37M financing

HIVE Blockchain Technologies Ltd.



News Release

October 11, 2017
HIVE Blockchain Closes $30 Million Bought Deal Financing, Completes $7 Million Investment by Genesis Mining, and Acquires Second Data Centre

Vancouver, British Columbia — 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

For further information please contact:
Harry Pokrandt
Tel: (604) 609-6110

The 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 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.