HIVE Blockchain Closes $30 Million Bought Private Placement

Written By: Stratton Report
October 12, 2017

hive-blockchain-technologies

HIVE Blockchain Technologies recently announced 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”). 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.