THIS NEWS RELEASE CONSTITUTES A “DESIGNED NEWS RELEASE” FOR PURPOSES OF THE COMPANY’S PROSPECTUS SUPPLEMENT DATED SEPTEMBER 2, 2022 TO THE AMENDED AND RESTATED SHORT FORM BASE SHELF PROSPECTUS DATED JANUARY 2, 2022.
VANCOUVER, British Columbia, Sept. 02, 2022 (GLOBE NEWSWIRE) — Hive Blockchain Technologies Ltd. (“HIV” or “Company”) (Nasdaq: HIVE; TSXV: HIVE; FSE: HBFA.F) is pleased to announce that it has entered into a market offer agreement (“ATM agreement”) with HC Wainwright & Co. (the “Medium“).
At-the Market Offer
Pursuant to the ATM Agreement, the Company and the Agent will implement an “on-market” equity offering program, whereby the Agent may issue and sell from time to time such number of common shares of the Company (the “Common shares“) with a total offer price of up to USD 100 million (“ATM Equity Program“). A cash commission of 3.0% of the total gross proceeds collected under the ATM Equity Program will be paid to the Agent in connection with the Services. The Company intends to use the net proceeds from the ATM Equity Program, if any, primarily to support the growth and development of the Company’s existing mining operations as well as for working capital and general corporate purposes. In addition, the company wants to be in a position to exploit opportunities that may exist or that may be made aware of related to the distressed sale of mining equipment throughout the mining ecosystem.
Since ordinary shares will be distributed at trading prices prevailing at the time of sale, prices may vary between purchasers during the distribution period. The volume and timing of sales, if any, will be determined at the sole discretion of the Company’s management and in accordance with the terms of the ATM Agreement. To date, no common shares have been distributed by the Company pursuant to the ATM Agreement.
Sales of common stock, if any, under the ATM Equity Program are expected to be made in transactions deemed to be “at-the-market distributions” as defined in National Instrument 44-102 Shelf distributions, as sales made directly on the Nasdaq Capital Market or another trading market of the shares in the United States at the market price in effect at the time of each sale. No Common Shares will be offered or sold under the ATM Equity Program on the TSX Venture Exchange or any other trading market in Canada. The ATM Equity program can be terminated by either party at any time.
The offer and sale of ordinary shares under the ATM Equity program will take place by means of a prospectus supplement (“Prospectus supplement”) to the company’s amended and restated short-form base shelf prospectus dated 4 January 2022 (“Prospectus for base shelf” and, together with the prospectus supplement, “Prospectus”) and US registration statement on Form F-10 (“Registration Statement”), which includes the base shelf prospectus and the prospectus supplement. The registration statement has been filed with the United States Securities and Exchange Commission (the “SEC”), but has not yet entered into force. The common shares cannot be sold, nor can offers to buy ordinary shares be accepted under the ATM Equity program until the registration statement becomes effective. The prospectus has been filed with the applicable provincial regulatory authorities in Canada and the SEC. The prospectus is available on the SEDAR website maintained by the Canadian Securities Administrators at www.sedar.com and is available on the SEC’s EDGAR website at www.sec.gov .
This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or in any jurisdiction where the offer, sale or solicitation would be illegal. The common shares referred to in this press release may not be offered or sold in the United States without registration or an applicable exemption from registration.
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. went public in 2017 as the first cryptocurrency mining company with a green energy and ESG strategy.
HIVE is a growth-oriented technology share in the emerging blockchain industry. As a company whose shares are traded on a major exchange, we are building a bridge between the digital currency and blockchain sector and traditional capital markets. HIVE owns state-of-the-art, green energy-powered data center facilities in Canada, Sweden and Iceland, where we strive to source only green energy to mine on the cloud and generate rewards of both Ethereum and Bitcoin. Since the beginning of 2021, HIVE has held in secure storage the majority of ETH and BTC coin mining rewards. Our shares give investors exposure to the operating margins of digital currency mining, as well as a portfolio of cryptocurrencies such as ETH and BTC. Because HIVE also owns hard assets such as data centers and advanced multipurpose servers, we believe our shares offer investors an attractive way to gain exposure to the cryptocurrency space.
HIVE believes that it has previously demonstrated its ability to raise capital and achieve above-average returns on invested capital, while consistently being rated as one of the industry’s top mining companies for efficiency.
For more information and to sign up to HIVE’s mailing list, please visit www.HIVEblockchain.com. follow @HIVEblockchain on Twitter and subscribe to HIVE’s YouTube channel.
On behalf of HIVE Blockchain Technologies Ltd.
“Frank Holmes”
Executive Chairman
For further information please contact:
Frank Holmes
Phone: (604) 664-1078
Warning
Trading in the company’s securities should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or rejected the information here. Neither the TSX Venture Exchange nor the Regulatory Services Provider (as that term is defined in the TSX Venture Exchange Policy) accepts responsibility for the adequacy or accuracy of this news release.
Forward-looking statements
This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws. In some cases, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “goals”, “expects”, “expected”, “a possibility exists”, “budget”, “planned”. “, “estimates”, “outlooks”, “forecasts”, “forecast”, “prospects”, “strategy”, “intends”, “anticipates”, “believes”, or variations of such words and expressions or statements about that certain actions, events or results “may”, “could”, “would”, “perhaps” or, “will”, “occur” or “be achieved”, and similar words or the negative of these terms and similar terminology. I in addition, all statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information.Statements that contain forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events or circumstances.
The information in this release regarding expectations regarding the acquisition of miners, the Company’s expansion plans, expectations regarding the offering of common shares under the ATM Equity Program and anticipated use of proceeds from the ATM Equity Program and about future plans and goals of the Company is forward-looking information. This forward-looking information is based on the company’s opinions, estimates and assumptions which, although the company considers appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors. that could cause actual results, activity levels, performance or achievements to differ materially from those expressed or implied by such forward-looking information, including, but not limited to, risks associated with the offer or sale of securities pursuant to the prospectus supplement, the completion of the transactions contemplated by this press release in the manner anticipated and the factors discussed in more detail under the “Risk Factors” section of the company’s prospectus and its annual information form, both of which are available under the company’s profile on SEDAR at www.sedar.com; and should be carefully considered by potential investors.
The forward-looking statements and information in this press release include, but are not limited to, statements with respect to the potential issuance of securities in the company, the amount of securities that may be issued and the use of the proceeds under the prospectus supplement filed in connection therewith.
This forward-looking information is based on reasonable assumptions and estimates made by the management of the company at the time it was made, and involves known and unknown risks, uncertainties and other factors that could cause the company’s actual results, performance or achievements to be materially different from future results , performance or achievements expressed or implied by such forward-looking information. Such factors include, among other things, risks relating to: market conditions and other factors that may affect the Company’s ability to use the ATM Equity Program and the prices at which the Company may sell common shares in the ATM Equity Program; the dilutive effect of issuances of common stock in the ATM Equity Program; the COVID-19 crisis; the transaction described in this press release may not occur on the terms proposed and described herein or at all, and if such transaction is completed; The Company’s cryptocurrency operation may not meet expected performance levels for one or more reasons; the proposed transaction may not have a positive impact on HIVE’s revenues or gross margin; the impact of new electric power prices that may impair profitability and operating performance; expansion may not materialize as expected, or at all; operational risks caused by social unrest; the digital currency market; the ability to successfully mine digital currency; revenues may not increase as expected, or at all; it may not be possible to profitably liquidate the current digital currency holdings, or at all; a decline in digital currency prices could have a material adverse effect on operations; the volatility of digital currency prices; The company may never realize more efficient operations, a lower cost structure or greater flexibility in operations; risks related to the global economic climate; dilution; and other related risks as more fully described in the Prospectus and the Base Shelf Prospectus Supplement, and other documents disclosed in the Company’s filings at www.sedar.com and www.sec.gov/EDGAR. In connection with the forward-looking information in this press release, the company has made assumptions about: market conditions and other factors that may affect the company’s ability to use the ATM Equity Program and the prices at which the company can sell ordinary shares in the ATM Equity Program; the dilutive effect of issuances of common stock in the ATM Equity Program; current cryptocurrency mining profitability (including pricing and volume of current transaction activity); profitable use of the company’s assets going forward; the Company’s ability to profitably liquidate its digital currency holdings as needed; historical prices of digital currencies and the Company’s ability to mine digital currencies on the cloud in accordance with historical prices; and there will be no regulation or law preventing the company from conducting its business. The company has also assumed that no significant events occur outside the company’s normal operations. Although the company has tried to identify important factors that can cause actual results to deviate significantly, there may be other factors that mean that the results are not as expected, estimated or intended. No guarantee can be given that such statements will prove to be accurate, as actual results and future events may differ materially from those anticipated in such statements. Accordingly, readers should not rely on forward-looking information. The company undertakes no obligation to update or revise forward-looking information other than as required by law.
