VANCOUVER, Sept. 7, 2017 /CNW/ - 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
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.
SOURCE Leeta Gold Corp.