Published: 20 December 2017
Written by Editor
HashChain Technology Confirms Syndicate for Previously Announced Bought Deal Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Further to its press release of December 19, 2017, HashChain Technology Inc. (TSX VENTURE:KASH) ("HashChain" or the "Company"), is pleased to confirm the syndicate of underwriters for its previously announced bought deal private placement of units (the "Offering"). The syndicate will be co-lead by Eight Capital (as sole bookrunner) and Canaccord Genuity Corp., and will include Beacon Securities Limited, Paradigm Capital Inc., Mackie Research Capital Corporation, PI Financial Corp. and Gravitas Securities Inc. (collectively, the "Underwriters"). As previously announced in the Company's press release of December 19, 2017, pursuant to the Offering, the Underwriters have agreed to purchase 12,381,000 units of the Company (the "Units"), on a "bought deal" private placement basis, subject to all required regulatory approvals, at a price per Unit of $2.10 (the "Offering Price"), for total gross proceeds of approximately $26,000,000 (the "Offering"). Each Unit shall consist of one common share of the Company (a "Share") and one common share purchase warrant (a "Warrant"). Each Warrant shall entitle the holder thereof to acquire one Share at a price of $2.45 for a period of 24 months following the Closing Date.
In the event that, after the date that is four months and one day following the closing of the Offering, the closing sale price of the Company's shares on the TSX Venture Exchange is greater than $4.00 per share for a period of 10 consecutive trading days at any time after the closing of the Offering, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.
The Company has granted the Underwriters an over-allotment option to purchase up to an additional 15% of the Units of the Offering at the Offering Price, exercisable in whole or in part, at any time on or prior to 48 hours prior to the closing of the Offering. If this option is exercised in full, an additional approximately $3,900,000 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be approximately $29,900,000.
The Company intends to use the net proceeds of the Offering for further mining rig purchases, working capital and for general corporate purposes.
The closing date of the Offering is scheduled to be on or about January 4, 2018 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
About HashChain Technology Inc.
HashChain is a Blockchain Technology company, and the first publicly traded (TSXV) Canadian cryptocurrency mining company to file a final prospectus supporting highly scalable and flexible operations across all major cryptocurrencies. HashChain taps low-cost Canadian power, cool climate and high-speed Internet: the trifecta most critical to mining success, to create a competitive position for maximizing the number of mining 'wins.' In addition to cryptocurrency mining, Hashchain has a strategic focus on acquiring companies utilizing solutions in the blockchain and in developing innovative software solutions. HashChain is based in Vancouver, British Columbia.
For further details of the Company's business, please refer to the Company's final prospectus dated December 12, 2017 which is available on the Company's SEDAR profile at www.sedar.com or visit http://www.hashchain.ca.
On Behalf of the Board,
Patrick Gray, CEO & Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes information about the proposed Offering and the Company's use of proceeds of the Offering including the Company's intention to purchase additional mining rigs, and other forward-looking information.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the acquisition of additional mining rigs may not occur as planned, or at all; the Offering may not close on the terms and timing anticipated, or at all; and the Company will not obtain TSX Venture Exchange approval of the Offering.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to close the Offering, including obtaining TSX Venture Exchange approval; and the Company's ability to buy additional mining rigs. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
HashChain Technology Inc.