HIVE Blockchain Announces Private Placement of Convertible Debentures

VANCOUVER, BC / ACCESSWIRE / December 24, 2020 / HIVE Blockchain Applied sciences Ltd. (TSX.V:HIVE)(OTCQX:HVBTF)(FSE:HBF) (the “Firm” or “HIVE”) is happy to announce, topic to regulatory approval, that it intends to finish a non-brokered non-public placement (the “Transaction”) of unsecured debentures (the “Debentures”), for combination gross proceeds of USD$15,000,000 with U.S. World Buyers, Inc. (“U.S. World”).

The Debentures will mature on the date that’s 60 months from the date of issuance, bearing curiosity at a fee of 8% each year. The Debentures shall be issued at par, with every Debenture being redeemable by HIVE at any time, and convertible on the choice of the holder into frequent shares (every, a “Share”) within the capital of the Firm at a conversion worth of CAD$3.00 per Share. Curiosity shall be payable month-to-month and principal shall be payable quarterly. As well as, U.S. World shall be issued 5.0 million frequent share buy warrants (the “Warrants”). Every entire Warrant will entitle U.S. World to accumulate one frequent at an train worth of CAD$3.00 per Share for a interval of three years from closing.

The Firm intends to make use of the proceeds from the Transaction for normal company functions and dealing capital.

Mr. Frank Holmes, Interim Government Chairman of HIVE, commented, “The Transaction is a superb alternative for HIVE to reinforce liquidity, preserve momentum and deploy capital into extra miners and infrastructure. U.S. World has not too long ago bought shares of HIVE as a way to redeploy capital again into HIVE. No shares have been bought by me personally. The acquisition of an 8% debt instrument by U.S. World is in keeping with its funding standards and assists HIVE by offering working capital for its progress technique. The financing is being accomplished with out the standard 6% dealer charges, and the price of capital is far lower than the 16% value of capital related to leasing tools for crypto mining.”

The issuance of the Debentures is topic to TSX Enterprise Trade approval and is anticipated to shut on or about December 31, 2020.

The issuance of the Debentures to U.S. World Buyers, Inc. is taken into account a associated celebration transaction inside the that means of TSXV Coverage 5.9 and Multilateral Instrument 61-101 Safety of Minority Safety Holders in Particular Transactions (“MI 61-101”) as Frank Holmes, Interim Government Chairman of HIVE is a director, officer and controlling shareholder of U.S. World Buyers, Inc. HIVE intends to depend on the exemptions from the formal valuation and minority approval in sections 5.5(b) and 5.7(1)(a) of MI 61-101 in respect of the Firm not listed on particular markets and the Transaction honest market worth not exceeding 25% of the Firm’s market capitalization. The Transaction was accepted by the unbiased administrators of HIVE and U.S. World Buyers, Inc.

The Firm expects to file a fabric change report in respect of the associated celebration transaction lower than twenty-one days previous to the closing of the Transaction, which the Firm deems affordable within the circumstances as the main points of the Transaction and the participation by U.S. World Buyers, Inc. weren’t settled till shortly earlier than the anticipated closing of the Transaction and the Firm wished to finish the Transaction in an expeditious method.

About HIVE Blockchain Applied sciences Ltd.

HIVE Blockchain Applied sciences Ltd. is a progress oriented, TSX.V-listed firm constructing a bridge from the blockchain sector to conventional capital markets. HIVE owns state-of-the-art inexperienced energy-powered knowledge centre amenities in Canada, Sweden, and Iceland which produce newly minted digital currencies like Bitcoin and Ethereum constantly on the cloud. Our deployments present shareholders with publicity to the working margins of digital foreign money mining in addition to a portfolio of crypto-coins.

For extra info and to register to HIVE’s mailing listing, please go to www.HIVEblockchain.com. Comply with @HIVEblockchain on Twitter and subscribe to HIVE’s YouTube channel.

On Behalf of HIVE Blockchain Applied sciences Ltd.

“Frank Holmes”
Interim Government Chairman

For additional info please contact:

Frank Holmes
Tel: (604) 664-1078

Neither the TSX Enterprise Trade nor its Regulation Companies Supplier (as that time period is outlined in insurance policies of the TSX Enterprise Trade) accepts duty for the adequacy or accuracy of this information launch.

Ahead-Wanting Data

Apart from the statements of historic reality, this information launch comprises “forward-looking info” inside the that means of the relevant Canadian securities laws that’s primarily based on expectations, estimates and projections as on the date of this information launch. The info on this information launch about future plans and targets of the Firm, are forward-looking info; and the intentions, plans and future actions of the Firm, together with the intention to finish the Providing and the anticipated expenditure of the proceeds of the Providing, and the Firm’s targets, objectives or future plans in addition to the Firm’s capacity to efficiently mine digital foreign money, the development and operation of expanded blockchain infrastructure, and the regulatory setting of cryptocurrency in the US and different jurisdictions the place the Firm could function.

This forward-looking info is predicated on affordable assumptions and estimates of administration of the Firm on the time it was made, and entails identified and unknown dangers, uncertainties and different components which can trigger the precise outcomes, efficiency or achievements of the Firm to be materially completely different from any future outcomes, efficiency or achievements expressed or implied by such forward-looking info. Such components embody, amongst others: the COVID 19 disaster; the transaction described on this information launch could not happen on the phrases as proposed and described herein or in any respect and, if such transaction is accomplished, the cryptocurrency operation could not meet anticipated efficiency ranges for a number of causes; the proposed transaction could not have a optimistic affect on HIVE’s revenues, or gross mining margin; the affect of latest electrical energy charges which might impair profitability and working efficiency; the operation of the acquired belongings could not happen as at present deliberate, or in any respect; enlargement could not materialize as at present anticipated, or in any respect; the digital foreign money market; the power to efficiently mine digital foreign money; income could not improve as at present anticipated, or in any respect; it will not be doable to profitably liquidate the present digital foreign money stock, or in any respect; a decline in digital foreign money costs could have a big detrimental affect on operations; the volatility of digital foreign money costs; the Firm could by no means notice extra environment friendly operations, a decrease value construction, or better flexibility in operation; dangers referring to the worldwide financial local weather; dilution; and different associated dangers as extra totally set out within the Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations for the yr ended March 31, 2020, and different paperwork disclosed underneath the Firm’s filings at www.sedar.com. The Firm has additionally assumed that no vital occasions happen outdoors of the Firm’s regular course of enterprise. Though the Firm has tried to determine necessary components that might trigger precise outcomes to vary materially, there could also be different components that trigger outcomes to not be as anticipated, estimated or supposed. There will be no assurance that such statements will show to be correct as precise outcomes and future occasions might differ materially from these anticipated in such statements. Accordingly, readers mustn’t place undue reliance on forward-looking info. The Firm undertakes no obligation to revise or replace any ahead -looking info apart from as required by regulation.