HIVE Blockchain (currently Leeta Gold) Announces Closing of Private Placement

07 Sep 2017
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Vancouver, British Columbia – Leeta Gold Corp. (TSXV: LTA.H) (the "Company" or "HIVE") (being renamed HIVE Blockchain Technologies Ltd.) is pleased to announce it has closed the second tranche of its non-brokered private placement (the “Private Placement”), as previously announced in the Company’s news releases dated June 14, 2017 and August 9, 2017. In total, 55 million subscription receipts were issued in two tranches at a price of $0.30 per subscription receipt for aggregate gross proceeds of $16,500,000. The proceeds will be held in escrow until closing of the acquisition of the first Data Centre from Genesis, as described in the Company’s news release dated June 14, 2017 (the “Genesis Transaction”). Upon closing of the acquisition and satisfaction of the escrow release conditions, each subscription receipt will be automatically exchanged for one common share of the Company.

37,830,000 subscription receipts issued pursuant to the Private Placement are subject to a hold period expiring December 10, 2017 and 17,170,000 subscription receipts are subject to a hold period expiring January 8, 2018. The common shares issued in exchange for the subscription receipts will bear the same hold periods as the respective subscription receipts.

$414,590 will be paid in cash to finders in connection with the Private Placement at closing of the acquisition. Proceeds from the financing will be used for the acquisition of the first Data Centre and for general working capital.

Trading of the common shares of the Company will remain halted until such time as all the required documentation regarding the Genesis Transaction has been filed with and accepted by the TSX Venture Exchange (the “Exchange”) and permission to resume trading has been obtained from the Exchange.

The Company also announces that it has entered into a second loan agreement on August 18, 2017 (the “Loan Agreement”) with a company owned by Harry Pokrandt, CEO of HIVE, for an aggregate amount of $160,000 bearing interest at a rate of 6% per annum (the “Loan”). The principal amount of the Loan is due and payable on August 18, 2018 and is unsecured. In connection with Loan, the Company will issue 533,333 bonus warrants (the “Bonus Warrants”) exercisable at a price of $0.30 per common share for a period of one year from the date of the Loan, subject to Exchange approval. Proceeds of the Loan will be used for general working capital.

The Bonus Warrants are subject to a hold period of four months and a day, with such hold period expiring on December 19, 2017. The bonus warrants as previously announced in the Company’s news releases dated August 9, 2017 are subject to a hold period of four months and a day, with such hold period expiring on October 23, 2017.

The Company further announces that upon completion of the Genesis Transaction, the Company will pay a 5% finder’s fee in shares in the amount of 3,398,771 shares.

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Completion of the acquisition is subject to a number of conditions, including but not limited to acceptance by the Exchange and if applicable pursuant to the Exchange requirements, majority of the minority shareholder approval. Where applicable, the acquisition cannot close until the required shareholder approval is obtained. There can be no assurance that the acquisition will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the acquisition, any information released or received with respect to the acquisition may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.

The Exchange has in no way passed upon the merits of the acquisition and has neither approved nor disapproved the contents of this news release. Neither the Exchange nor its Regulation Services Provider (as that term is defined in policies of the Exchange) accepts responsibility for the adequacy or accuracy of this news release.

On Behalf Of Leeta Gold Corp. (to be renamed HIVE BLOCKCHAIN TECHNOLOGIES LTD.)

"Harry Pokrandt"
President, CEO and Director

For further information please contact:

Harry Pokrandt
Tel: (604) 609-6110

 

Forward-Looking Information

Except for the statements of historical fact, this news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release.  The information in this news release about the completion of the acquisition of the first Data Centre, as well as additional Data Centres, and the closing of financings related thereto, and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.

Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, risks related to the Company’s or Genesis Mining’s inability to satisfy a condition precedent to the completion of the Data Centre acquisitions (including obtaining necessary regulatory approvals and completion of the financings thereon), other risks related to completion of the completion of the Data Centre acquisitions and risks related to the inability of either of the Company or Genesis Mining to perform its respective obligations under the contemplated Data Centre acquisitions.

The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company’s and Genesis Mining’s ability to complete the Data Centre acquisitions and related financings. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.