$HIVE Announces $30MM Bought Deal Financing and Launches Expansion in Sweden

HIVE Blockchain Technologies Ltd logo

(TSX.V:HIVE)

HIVE Blockchain Technologies Ltd. is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P., pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 10,715,000 units of the Company at a price of C$2.80 per Unit, for aggregate gross proceeds of C$30,002,000. The Underwriters have been granted an option, exercisable at any time up to forty-eight hours prior to closing, to purchase up to an additional 1,607,250 Units at the Offering Price. Each Unit will consist of one common share and one common share purchase warrant, with each Warrant entitling the holder to purchase one common share at a price of $3.90 for a period of two years.

The Offering will take place by way of a private placement to accredited investors in such provinces of Canada as the Underwriters may designate, and otherwise in those jurisdictions where the Offering can lawfully be made on a private placement basis. The securities issued under the 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 Offering may be made.

The net proceeds of the Offering are expected to be used to fund the second phase of construction at the cryptocurrency mining data centre in Sweden and for general working capital purposes.

The Offering is expected to close on or about November 14, 2017. Closing of the 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 TSX Venture Exchange. Certain insiders, including Genesis Mining Ltd., and other purchasers arranged by the Company are expected to subscribe for C$10,000,000 under the Offering.

The Expansion will consist of newly constructed GPU mining rigs using the latest hardware, custom-designed by Genesis. The Company’s cryptocurrency mining capacity or hashpower is anticipated to double in Sweden as a result of the Expansion and upon completion, HIVE’s hashpower capacity is expected to be based approximately 78% in Sweden and 22% in Iceland.

“The Sweden Expansion represents an incredible scaling opportunity for HIVE. It will achieve major growth in hashpower capacity, our core business and the key infrastructure underlying blockchain technology. The new facilities will utilize the latest hardware, custom-designed by Genesis. Their expertise minimizes execution risk, enabling HIVE to benefit from a rapid speed to market and increased momentum.”

-Harry Pokrandt, President, CEO and a Director