HIVE $HIVE Acquires Second Data Centre With $30mm Bought Financial Deal

HIVE Blockchain Technologies Ltd logo

HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) is pleased to announce that it has closed its previously announced bought deal private placement. A total of 20,000,000 common shares were sold at a price of C$1.50 per Share for aggregate gross proceeds of $30,000,000. 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.. 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 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 in accordance with the terms of an investor rights agreement between the Company and Genesis Mining Ltd., 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

With the completion of the Offering, the Company has completed the purchase of additional cryptocurrency mining equipment located in Reykjanes, Iceland from Genesis. Pursuant to a master services agreement between the Company and Genesis, 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 master services agreement 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.