Hashchain Technology Inc. has confirmed the syndicate of underwriters for its previously announced bought deal private placement of units. 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.
We seek Safe Harbor.