Hive Blockchain Closes $34.5 Million Bought Deal Financing

HIVE Blockchain (TSXV:HIVE) has announced it has closed a previously announced bought deal private placement for aggregate gross proceeds of $34.5 million.
As quoted in the press release:

he Offering was underwritten by a syndicate of underwriters led by GMP Securities L.P. and included Haywood Securities Inc., Eventus Capital Corp., and PI Financial Corp. (collectively, the “Underwriters”). Each Unit consists of one common share (a “Share”) and one Share purchase warrant (a “Warrant”), with each Warrant entitling the holder to purchase one Share at a price of $3.90 until November 14, 2019. The Shares and the Warrants issued under the Offering are subject to a hold period expiring March 15, 2018. In connection with the Offering, the Underwriters received a cash commission equal to 6% of the gross proceeds raised in the Offering, excluding any proceeds raised from Genesis Mining Ltd. (“Genesis”).
The net proceeds of the Offering are to be used to fund the second phase of construction at the digital currency mining data centre in Sweden (as described in more detail below) and for general working capital purposes. Genesis, an insider of the Company, subscribed for C$5,090,904 of the Offering, in accordance with the terms of an investor rights agreement between Genesis and the Company.
Proposed Listing of Warrants
The Company further announces it is taking steps to seek to list for trading on the TSX Venture Exchange (the “Exchange”) the Warrants issued pursuant to the Offering (the “Listing”). The Company anticipates that the Listing will be effective on or after March 15, 2018 when the hold period expires. In preparation for the Listing, the Company has entered into a warrant indenture with Computershare Trust Company of Canada, as warrant agent.
Sweden Data Centre
On October 23, 2017 and October 25, 2017, HIVE entered into legally binding letter agreements with its largest shareholder Genesis under which the Company will finance the construction of the first and second phases of digital currency mining rigs at a data centre in Sweden (the “Sweden Data Centre”). Please refer to the Company’s October 23, 2017 and October 25, 2017 news releases for more details.

Click here to read the full press release.