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DMG Blockchain Solutions Inc
Symbol DMGI
Shares Issued 164,926,007
Close 2021-06-08 C$ 0.81
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DMG Blockchain to invest $3-million in Brane Capital

2021-06-08 12:43 ET - News Release

Mr. Sheldon Bennett reports

DMG BLOCKCHAIN SOLUTIONS ANNOUNCES STRATEGIC INVESTMENT IN CRYPTO CUSTODIAN BRANE CAPITAL

DMG Blockchain Solutions Inc. will complete a $3-million strategic investment in Ottawa-based Brane Capital, a leading cryptocurrency and digital asset custodian.

DMG has agreed to purchase eight million units of Brane at a unit price of 37.5 cents per unit. Each unit comprises one common share in the capital of the Brane and one-half of a common share purchase warrant. Each whole warrant will entitle DMG to purchase one additional common share of Brane at an exercise price of 50 cents per common share for a period of 24 months.

As disclosed on DMG's management call on April 22, 2021, and its recent Q2 earnings call, the company is executing on its use of proceeds strategy. DMG is focused on its rapidly developing Core+ strategy. This investment and partnership with Brane will allow DMG's custody solutions, under the Blockseer portfolio, to enter the market sooner than anticipated and complement other technology investments DMG is currently planning.

"DMG considers Brane to be a unique and promising company in the global crypto custody space, and we're excited about the opportunities this investment will achieve for both companies," said Sheldon Bennett, DMG's chief executive officer. "DMG and Brane share strong commitments to innovation, integrity and sustainability. This new partnership will position both companies as setting new standards of excellence in the blockchain sector."

"Brane Vault is the best user experience I've seen for a multiple-signature wallet, coupled with security best practices, and a technology approach that is native bitcoin to the core. We believe Brane's technology will integrate into our Breeze and Freeze products to accelerate these products time to market and revenue sooner than planned. We are also investigating Brane's technology for securing the pool payouts that DMG manages via Blockseer, as well," stated Adrian Glover, DMG's chief technology officer.

Together with DMG's strategic investment in Brane, Mr. Bennett will join Brane's board of directors -- bringing over 20 years of management experience in international companies, including PwC, Ernst & Young, Baker & McKenzie, and Cisco Systems. In addition to world-class blockchain technology expertise, Mr. Bennett brings deep experience in environmental, social and governance (ESG) strategy to Brane's board. In May, 2021, DMG became one of the first signatories of the Crypto Climate Accord (CCA) to promote the decarbonization of the cryptocurrency industry through emissions reduction and transition to renewable energy sources.

As a director of Brane, Mr. Bennett will join distinguished board members including the Hon. Dalton McGuinty, Ontario's 24th Premier, and Dave Revell, former executive vice-president and global chief investment officer of CIBC.

"We are long-time admirers of DMG and its leadership team, so we are thrilled to realize this partnership and welcome Sheldon Bennett to our board of directors," said Adam Miron, Brane's chairman and interim chief executive officer, and co-founder of HEXO Corp. "Working together, Brane and DMG have an opportunity to make Canada a global leader in developing a well-regulated, sustainable blockchain industry that unlocks economic opportunity while protecting all market participants."

DMG's strategic investment in Brane will accelerate the market traction of both companies and facilitate co-operation on development of advanced blockchain technologies, as well as continued progress toward leadership in environmental sustainability. The relationship between the companies will not affect Brane's independence as a custodian, which Brane maintains through strict separation from any cryptocurrency trading operations.

Brane currently offers a crypto asset self-custody technology solution for IIROC-regulated securities dealers and is working toward becoming Canada's first qualified custodian for digital assets. Brane's leadership team includes experienced executives from finance, technology and government, including former Bank of New York Mellon Canada chief executive officer Jerome Dwight as president, and Charlie Millar, former vice-president of content acquisition at Rogers Communications, as chief revenue officer.

Brane's custody technology is certified ISO (International Organization for Standardization) 27001, ISO 27017 and NIST CSF Tier 4 -- the highest practical level of assurance for information security -- for digital assets under custody, with SOC 2 certification in progress by audit firm MNP. Earlier this year, Brane announced an industry-first partnership with Computershare Trust Company to provide backup cold storage solution for its institutional clients.

About DMG Blockchain Solutions Inc.

DMG is an environmentally friendly vertically integrated blockchain and cryptocurrency company that manages, operates and develops end-to-end digital solutions to monetize the blockchain ecosystem. DMG's sustainable businesses are segmented into three main divisions: data centre operations, data analytics and forensics, and developing enterprise blockchains. DMG's non-polluting data centre operations focus on earning eco-friendly revenues from block rewards and transaction fees by mining primarily bitcoin as well as providing hosting services for industrial mining clients entirely powered by renewable energy. DMG's data analytics and forensic services provide technical expertise software products such as Blockseer Pool, Mine Manager and Walletscore, as well as working with auditors, law firms and law enforcement organizations. DMG's permissioned blockchain technology is focused on developing enterprise software for the supply chain management of controlled products. DMG's strategy is to become the domain experts across the business verticals it focuses on. DMG's environmentally committed management team includes seasoned crypto experts, forensic and financial professionals, and blockchain developers with deep relationships throughout the industry and a strong ecological consciousness.

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