HIVE Blockchain Technologies Ltd. (HIVE) today announced that it has closed a previously announced bought deal private placement, including the exercise in full of the underwriters’ option. A total of 12,322,250 units were sold at a price of C$2.80 for aggregate gross proceeds of $34,502,300. 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.
Each unit consists of one common share of HIVE Blockchain stock and one share purchase 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 holding period that will expire 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.
The net proceeds of the offering are to be used to fund the second phase of construction at the digital currency mining data center in Sweden, which HIVE announced last month and for general working capital purposes. Genesis, a partner of HIVE, subscribed for C$5,090,904 of the offering, in accordance with the terms of an investor rights agreement between Genesis and HIVE.
Proposed Listing of Warrants
The company further announces it is taking steps to seek to list for trading on the TSX Venture Exchange the warrants issued pursuant to the offering. HIVE 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 center in Sweden.
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 center is subject to a number of conditions, including but not limited to, exchange approval.