03:22:22 EDT Sun 17 Oct 2021
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Hive Blockchain Technologies Ltd
Symbol HIVE
Shares Issued 346,433,064
Close 2021-01-11 C$ 2.81
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Hive Blockchain closes $15M (U.S.) debenture placement

2021-01-12 02:33 ET - News Release

Mr. Frank Holmes reports


Hive Blockchain Technologies Ltd. has closed its previously announced non-brokered private placement of unsecured debentures for aggregate gross proceeds of $15-million (U.S.) with U.S. Global Investors Inc.

The debentures will mature on the date that is 60 months from the date of issuance, bearing interest at a rate of 8 per cent per annum. The debentures will be issued at par, with each debenture being redeemable by Hive at any time and convertible at the option of the holder into common shares in the capital of the company at a conversion price of $3 per share. Interest will be payable monthly, and principal will be payable quarterly. In addition, U.S. Global will be issued 5.0 million common share purchase warrants. Each whole warrant will entitle U.S. Global to acquire one common share at an exercise price of $3 per share for a period of three years from closing.

The issuance of the debentures received conditional approval by the TSX Venture Exchange on Dec. 31, 2020. The debentures and warrants are subject to a hold period and may not be traded until May 13, 2021, except as permitted by applicable securities legislation and the rules and policies of the TSX Venture Exchange.

The company intends to use the proceeds from the transaction for general corporate purposes, working capital and expansion of its business plan.

Frank Holmes, interim executive chairman of Hive, commented: "The transaction is an excellent opportunity for Hive to enhance liquidity, maintain momentum, and deploy capital into additional miners and infrastructure. U.S. Global has recently sold shares of Hive in order to redeploy capital back into Hive. No shares have been sold by me personally. The purchase of an 8 per cent debt instrument by U.S. Global is consistent with its investment criteria and assists Hive by providing working capital for its growth strategy. The financing is being completed without the usual 6-per-cent broker fees, and the cost of capital is much less than the 16-per-cent cost of capital associated with leasing equipment for crypto mining."

For additional information, please see the company's news release dated Dec. 24, 2020, for more details.

About Hive Blockchain Technologies Ltd.

Hive Blockchain is a growth-oriented, TSX Venture Exchange-listed company, building a bridge from the blockchain sector to traditional capital markets. Hive owns state-of-the-art green-energy-powered data centre facilities in Canada, Sweden and Iceland, which produce newly minted digital currencies like Bitcoin and Ethereum continuously on the cloud. Its deployments provide shareholders with exposure to the operating margins of digital currency mining, as well as a portfolio of crypto-coins.

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