HIVE Blockchain Technologies (TSXV:HIVE) has announced that Genesis Mining has partially exercised its participation right pursuant to an investor rights agreement and will purchase roughly 4.6 million shares of HIVE at $1.50 per share for a total of $7 million.
As quoted in the press release:
The Company announced a $30 million bought deal financing (the “Offering”) on September 21, 2017. Under the terms of an investor rights agreement between HIVE and Genesis, Genesis has the right to maintain up to its 30% ownership of the Company post-Offering. Genesis has elected to proceed with the Genesis Purchase which will result in Genesis maintaining an approximate 30% interest in HIVE.
The Genesis Purchase will be completed as a non-brokered private placement (the “Private Placement”) and is expected to close on October 11, 2017, subject to approval of the TSX Venture Exchange (the “Exchange”). The shares issued under the Private Placement will be subject to a hold period of four months and one day. The net proceeds of the Private Placement are expected to be used for general working capital purposes.
“We welcome the financial support of Genesis Mining, the leading cryptocurrency mining hashpower provider with over a million customers, in addition to the invaluable expertise they are already providing,” commented Harry Pokrandt, President, CEO and a Director at HIVE. “Genesis shares our vision to rapidly develop HIVE into a major player in the cryptocurrency mining space, leveraging traditional capital markets.”