HIVE Blockchain Technologies, the developer and owner of cryptocurrency mining infrastructure today has announced that its partner Genesis Mining has partially exercised its participation right pursuant to an investor rights agreement (as described below) and will be purchasing 4,666,667 shares of HIVE at C$1.50 per share for a total investment of C$7,000,000.
Hive announced a $30 million bought deal financing last month and under the terms of an investor rights agreement between HIVE and Genesis, Genesis has the right to maintain up to its 30% ownership of the company post-offering. Genesis has elected to proceed with the purchase which will result in maintaining an approximate 30% interest in HIVE.
“We strongly believe in the success of HIVE and think there is a lot of growth potential from where we are now,” commented Marco Streng, Co-Founder of Genesis Group.
The Genesis purchase will be completed as a non-brokered private placement and is expected to close on October 11, 2017.
The shares issued under the private placement will be subject to a hold period of four months and one day. The net proceeds are expected to be used for general working capital purposes.
[perfectpullquote align=”full” cite=”Harry Pokrandt, President, CEO and a Director at HIVE” link=”” color=”” class=”” size=””]”We welcome the financial support of Genesis Mining, the leading cryptocurrency mining hashpower provider with over a million customers, in addition to the invaluable expertise they are already providing. Genesis shares our vision to rapidly develop HIVE into a major player in the cryptocurrency mining space, leveraging traditional capital markets.”[/perfectpullquote]