BLOK Technologies Inc. (“BLOK Tech” or the “Company”) (CSE:BLK) (FRANKFURT:2AD) is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. (“Canaccord”) and Gravitas Securities Inc. (“Gravitas”) to act as co-lead agents (the “Agents”) on a brokered private placement offering of up to 10,000,000 units (the “Units”) of the Company at a price of $0.30 per Unit (the “Unit Issue Price”) to raise up to C$3,000,000 on a commercially reasonable efforts basis (the “Offering”). Each Unit will consist of one (1) common share (a “Common Share”) of the Company and one (1) common share purchase warrant (a “Warrant”) exercisable into one (1) Common Share of the Company at an exercise price of $0.50 per Warrant for a period of 24 months from the Closing Date.
The Warrants will be subject to an acceleration right (the “Warrant Acceleration Right”) if on any ten (10) consecutive trading days, beginning on the date that is four (4) months and one (1) day following the Closing Date, the daily volume weighted average trading price of the Company’s Common Shares on the Canadian Securities Exchange is greater than $0.75. If the Company exercises its Warrant Acceleration Right, the new expiry date of the Warrants will be the 30th day following the notice of such exercise.
BLOK Tech intends to use the net proceeds from the Offering for the development of emerging blockchain technology, investment in strategic opportunities as well as for general working capital purposes. Closing of the Offering is expected to occur on or about April 5, 2018 (the “Closing Date”).
“We’re excited to be working with the accomplished team at Canaccord and Gravitas”, said BLOK Tech CEO Rob Dawson. “This financing will enable further growth and development of our blockchain technology investments, moving our business forward to the next phase.”
Pursuant to the terms of the Offering, the Agents have been granted an option to arrange for the sale of up to C$2,000,000 of additional Units, which option is exercisable by the Agents at any time up until the Closing Date.
The Company will pay cash commissions to the Agents equal to 8.0% of the aggregate gross proceeds of the Offering payable in cash or Units, or any combination of cash or Units, at the option of the Agents. The Agents will receive Agents’ warrants exercisable for a period of 24 months from the Closing Date to acquire that number of Units of the Company which is equal to 8.0% of the number of Units sold under the Offering, at an exercise price that is equal to the Unit Issue Price.
The Offering is to be issued in the provinces of Canada, offshore and in the United States pursuant to an exemption from US Registration Requirements and such other jurisdictions as may be agreed to by the Company and the Agents, but way of private placement exemptions from prospectus requirements, subject to the receipt of necessary regulatory approvals.
About BLOK Technologies Inc.
BLOK Technologies Inc. is a public company that invests in and develops emerging companies in the blockchain technology sector. The Company’s approach is to provide capital, technology and management expertise to the companies it develops. With core technology being developed for the leading cannabis supply chain integrity network, BLOK Tech continues to grow its business into adjacent industries and emerging technologies. The Company systematically identifies early-stage technologies with potential to disrupt and innovate within their industry and invests the necessary resources to ensure the success of their projects.
For further information, please contact:
James Hyland, B.Comm.
Vice President Corporate Development, Director
ON BEHALF OF THE BOARD OF DIRECTORS
President & CEO
Statements in this news release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. There are no assurances the company can fulfill such forward-looking statements and the company undertakes no obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing the company, some of which are beyond the company’s control.