64-Hectare property provides the Company with significant expansion opportunities
HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (OTC:HVBTF) (the “Company” or “HIVE”) is pleased to announce the closing of its acquisition of Kolos Norway AS (“Kolos”) and its 64-Hectare property in Ballangen, Norway (the “Norway Acquisition”) as previously announced in the Company’s news release dated March 26, 2018. The acquisition of the property supports HIVE’s ongoing strategy of acquiring and developing assets with access to low-cost power in cold climates and supplies the Company with extensive flexibility to expand the business. The Company currently operates cryptocurrency mining facilities in Iceland and Sweden with 24.2 megawatts (“MW”) of energy consumption and is fully funded for an expansion of an additional 20 MW of SHA-256 ASIC mining capacity in Sweden to be completed by September 2018.
“I am extremely pleased by the completion of the acquisition of Kolos which provides HIVE the capability to rapidly expand our footprint in the Nordic region and maintains HIVE’s position as a leading blockchain and cryptocurrency infrastructure company,” said Harry Pokrandt, CEO and Director of HIVE. “The property supplies near term access to an additional 30 MW of capacity and provides HIVE a deep pipeline of opportunities for many years to come. I would like to commend the team at HIVE for their tireless work to complete the Norway Acquisition.”
HIVE completed the Norway Acquisition through a series of agreements pursuant to which HIVE acquired all of the issued and outstanding shares of Kolos for cash consideration in the amount of NOK 55,580,410 (approximately US $7.22 million), the issuance of 4,750,000 common shares of the Company (the “Shares”) and 1,250,000 warrants to purchase common shares of the Company (the “Warrants”), and the assumption of NOK 20,915,000 (approximately US $2.72 million) of liabilities. The Warrants and 2,650,000 of the Shares issued are subject to vesting provisions set as a combination of fixed time periods and milestones for the construction and commencement of cryptocurrency mining in Norway. The Warrants are exercisable for a period of 5 years from the date of issuance and have an exercise price of $1.24. The Shares and Warrants issued pursuant to the Norway Acquisition are subject to a hold period until September 23, 2018.
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. “Forward-looking information” in this news release includes information about the Company’s expansion of cryptocurrency mining operations in Sweden, including the expected quantum of electricity consumption; the proposed development and completion of a cryptocurrency mining facility in Norway; the quantum and timing of electricity consumption capacity in Norway; the long term growth of the Company; the business goals and objectives of the Company, 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, the Company may not complete its planned expansion in Sweden; the Company may not complete the construction of the data centre in Norway on terms favourable to the Company, or at all; construction and operation of the data centre in Norway may not occur as currently planned, or at all; the data centre in Norway may not receive the hydro electrical supply contemplated herein, or at all; the data centre in Norway, once constructed, may not operate on a scale (electrical consumption and output of digital currency) currently anticipated, and may not operate on commercially beneficial terms at all to the Company; the ongoing partnership with Genesis; the digital currency market; the Company’s ability to successfully mine digital currency; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company’s operations; the volatility of digital currency prices; and other related risks as more fully set out in the Filing Statement of the Company dated September 13, 2017 and other documents disclosed under the Company’s filings at www.sedar.com.
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 ability to complete its expansion in Sweden; the Company’s ability to complete the construction of digital currency operations in Norway; the Company will be able to profitably liquidate its digital currency inventory as required; the Company’s ongoing partnership with Genesis; historical prices of digital currencies and the ability of the Company to mine digital currencies will be consistent with historical prices; and there will be no regulation or law that will prevent the Company from operating its business. 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.