HIVE Blockchain Technologies completes $34.5M bought deal

HIVE Blockchain Technologies Ltd.



News Release

HIVE Blockchain Closes $34.5 Million Bought Deal Financing and Expands Production of Newly Minted Digital Currencies
14 Nov 2017

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, 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

For further information please contact:
Harry Pokrandt
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.