DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF: OTCQB) (FSE:
6AX) (“DMG” or the “Company”), a vertically integrated blockchain
and cryptocurrency technology company, is pleased to announce a
$3-million strategic investment in Ottawa-based Brane Capital, a
leading cryptocurrency and digital asset custodian.
DMG has agreed to purchase 8.0 million units of
Brane at a unit price of $0.375 per unit. Each unit is composed of
one common share in the capital of the Brane and one half of a
common share purchase warrant. Each whole warrant will entitle DMG
to purchase one additional common share of Brane at an exercise
price of $0.50 per common share for a period of 24 months.
As disclosed on DMG’s management call on April
22, 2021, and its recent Q2 earnings call, the Company is executing
on its use of proceeds strategy. DMG is focused on its rapidly
developing Core+ strategy. This investment and partnership with
Brane will allow DMG’s custody solutions, under the Blockseer
portfolio, to enter the market sooner than anticipated and
complement other technology investments DMG is currently
planning.
“DMG considers Brane to be a unique and
promising company in the global crypto custody space, and we’re
excited about the opportunities this investment will achieve for
both companies,” said Sheldon Bennett, DMG’s Chief Executive
Officer. “DMG and Brane share strong commitments to innovation,
integrity, and sustainability. This new partnership will position
both companies as setting new standards of excellence in the
blockchain sector.”
“Brane Vault is the best user experience I’ve
seen for a multiple signature wallet, coupled with security best
practices, and a technology approach that is native bitcoin to the
core. We believe Brane’s technology will integrate into our Breeze
and Freeze products to accelerate these products time-to-market and
revenue sooner than planned. We are also investigating Brane’s
technology for securing the pool payouts that DMG manages via
Blockseer, as well,” stated Adrian Glover, DMG’s CTO.
Together with DMG’s strategic investment in
Brane, Mr. Bennett will join Brane’s board of directors – bringing
over 20 years of management experience in international companies,
including PwC, Ernst & Young, Baker & McKenzie, and Cisco
Systems. In addition to world-class blockchain technology
expertise, Mr. Bennett brings deep experience in environmental,
social, and governance (ESG) strategy to Brane’s board. In May
2021, DMG became one of the first signatories of the Crypto Climate
Accord (CCA) to promote the decarbonization of the cryptocurrency
industry through emissions reduction and transition to renewable
energy sources.
As a director of Brane, Mr. Bennett will join
distinguished board members including the Hon. Dalton McGuinty,
Ontario’s 24th Premier and Dave Revell, former EVP and Global CIO
of CIBC.
“We are long-time admirers of DMG and its
leadership team, so we are thrilled to realize this partnership and
welcome Sheldon Bennett to our board of directors,” said Adam
Miron, Brane’s Chairman and Interim CEO, and co-founder of HEXO
Corp. “Working together, Brane and DMG have an opportunity to make
Canada a global leader in developing a well-regulated, sustainable
blockchain industry that unlocks economic opportunity while
protecting all market participants.”
DMG’s strategic investment in Brane will
accelerate the market traction of both companies and facilitate
cooperation on development of advanced blockchain technologies, as
well as continued progress toward leadership in environmental
sustainability. The relationship between the companies will not
affect Brane’s independence as a custodian, which Brane maintains
through strict separation from any cryptocurrency trading
operations.
Brane currently offers a crypto asset
self-custody technology solution for IIROC-regulated securities
dealers and is working toward becoming Canada’s first qualified
custodian for digital assets. Brane’s leadership team includes
experienced executives from finance, technology, and government,
including former Bank of New York Mellon Canada CEO Jerome Dwight
as President, and Charlie Millar, former Vice President of Content
Acquisition at Rogers Communications, as Chief Revenue Officer.
Brane’s custody technology is certified ISO
27001, ISO 27017, and NIST CSF Tier 4 – the highest practical level
of assurance for information security – for digital assets under
custody, with SOC 2 certification in progress by audit firm MNP.
Earlier this year, Brane announced an industry-first partnership
with Computershare Trust Company to provide backup cold storage
solution for its institutional clients.
Backgrounder – Brane
CapitalBrane Capital is a blockchain innovation company
focused on bringing assurance, credibility, and trust to the
blockchain economy as a trusted partner in the safekeeping of
digital assets for institutional clients. The company has recruited
respected leaders from financial institutions, government, law
enforcement, and the technology sector – leveraging their knowledge
and experience to keep crypto safe.
Management Team:
- Adam Miron (Chairman & Interim
CEO): Co-Founder of HEXO Corp., a
NYSE/TSX-listed, award-winning, consumer packaged goods cannabis
company.
- Jerome Dwight (President): Former CEO of Bank
of New York Mellon (Canada), former Global Market Head at RBC,
Chartered Accountant (CA-CPA and Chartered Financial Analyst
(CFA).
- Patrick McLaughlin (Founder and Chief Innovation
Officer): Former House of Commons analyst and RCMP
blockchain and crypto asset expert.
- Daniel Bowering (Senior Compliance Advisor):
Over 30 years in financial services with a focus on regulatory
compliance, including Chief Compliance Officer for several large
independent wealth management firms and senior compliance positions
in banking and independent retail.
- Charlie Millar (Chief Revenue Officer): Former
Vice President, Content Acquisition at Rogers Communications.
- Chris Carmichael (Chief Financial Officer):
Over 20 years in financial management and compliance.
- Christian Desjardins (Vice President,
Product): President of Ictinus Inc., an Ottawa user
experience and design company.
- Kirsten Paquette (Vice President, People &
Culture): Experienced public company and technology sector
people and culture leader.
Board of Directors:
- Dalton McGuinty: 24th Premier of Ontario.
- David Revell: Former Executive Vice President
and Chief Innovation Officer at CIBC.
- Matt Torigian: Former Ontario Deputy Minister
of Community Safety and Corrections.
- Jason Ewart: Co-Founder, Director, and EVP
Capital Markets for fintech company Uptempo Inc.
- Brian McIntomny: Senior Corporate Counsel at
Mann Lawyers.
- Suzanne Larsen: Executive leader in public
safety, telecommunications, aerospace, and defense.
- Adam Miron (see above)
- Patrick McLaughlin (see above)
Advisory Board:
- Bruno Saccomani: Canada’s former Ambassador to
Jordan and Iraq, and retired RCMP Superintendent.
- Nick Koolsbergen: Former Chief of Staff to the
Premier of Alberta and senior advisor to the Prime Minister of
Canada.
- Nathalie Bourque: Former Vice President,
CAE.
- Gianluca Cairo: Former Chief of Staff to
Canada’s Ministers of Innovation, Science and Economic Development,
and Public Services and Procurement.
- Sylvain Viau: Retired Lieutenant Colonel,
Canadian Armed Forces Communications Branch.
- Devan Pennell: Chief Financial Officer, Flow
Water Inc.
- Martin Lantaigne: Partner and Federal Cluster
Leader, IBM
- Dominique Jones: Experience Human Resources
leader and C-suite executive.
About DMG Blockchain Solutions
Inc.
DMG is an environmentally friendly vertically
integrated blockchain and cryptocurrency company that manages,
operates, and develops end-to-end digital solutions to monetize the
blockchain ecosystem. DMG’s sustainable businesses are segmented
into three main divisions: data centre operations, data analytics
and forensics and developing enterprise blockchains. DMG’s
non-polluting data centre operations focus on earning eco-friendly
revenues from block rewards and transaction fees by mining
primarily bitcoin as well as providing hosting services for
industrial mining clients entirely powered by renewable energy.
DMG’s data analytics and forensic services provide technical
expertise software products such as Blockseer Pool, Mine Manager
and Walletscore, as well as working with auditors, law firms, and
law enforcement organizations. DMG’s permissioned blockchain
technology is focused on developing enterprise software for the
supply chain management of controlled products. DMG’s strategy is
to become the domain experts across the business verticals it
focuses on. DMG’s environmentally committed management team
includes seasoned crypto experts, forensic & financial
professionals and blockchain developers with deep relationships
throughout the industry and a strong ecological
consciousness.Future changes in the Bitcoin network-wide mining
difficulty rate or Bitcoin hashrate may materially affect the
future performance of DMG’s production of Bitcoin, and future
operational results could also be materially affected by the price
of Bitcoin and an increase in hashrate mining difficulty.
On behalf of the Board of Directors,Sheldon
Bennett, CEO & Director
For further information, please contact:DMG
Blockchain Solutions Inc.Email: investors@dmgblockchain.comWeb:
www.dmgblockchain.com
Investor Relations Contact:CORE IR
516-222-2560
For Media Inquiries:Jules Abraham, Head of
Public RelationsCORE IRjabraham@coreir.com
Neither the TSX Venture Exchange nor its
Regulation Service Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
Cautionary Note Regarding
Forward-Looking Information
This news release contains forward-looking
information based on current expectations. Forward-looking
statements contained in this news release include statements
regarding the expectations of the relationships and integration
with Brane and the benefits therefrom, the development of its Core+
strategy, the ability to enter the market sooner than anticipated
with certain products and services, events, courses of action, and
the potential of the Company’s technology and operations, among
others, are all forward-looking information. Forward-looking
statements consist of statements that are not purely historical,
including any statements regarding beliefs, plans, expectations or
intentions regarding the future. Such information can generally be
identified by the use of forwarding looking wording such as "may",
"expect", "estimate", "anticipate", "intend", "believe" and
"continue" or the negative thereof or similar variations. The
reader is cautioned that assumptions used in the preparation of any
forward-looking information may prove to be incorrect. Events or
circumstances may cause actual results to differ materially from
those predicted, as a result of numerous known and unknown risks,
uncertainties, and other factors, many of which are beyond the
control of the Company, including but not limited to, market and
other conditions, volatility in the trading price of the Common
Shares, business, economic and capital market conditions; the
ability to manage operating expenses, which may adversely affect
the Company's financial condition; the ability to remain
competitive as other better financed competitors develop and
release competitive products; regulatory uncertainties; access to
equipment; market conditions and the demand and pricing for
products; the demand and pricing of bitcoins; security threats,
including a loss/theft of DMG's bitcoins; DMG's relationships with
its customers, distributors and business partners; the inability to
add more power to DMG's facilities; DMG's ability to successfully
define, design and release new products in a timely manner that
meet customers' needs; the ability to attract, retain and motivate
qualified personnel; competition in the industry; the impact of
technology changes on the products and industry; failure to develop
new and innovative products; the ability to successfully maintain
and enforce our intellectual property rights and defend third-party
claims of infringement of their intellectual property rights; the
impact of intellectual property litigation that could materially
and adversely affect the business; the ability to manage working
capital; and the dependence on key personnel. DMG may not actually
achieve its plans, projections, or expectations. Such statements
and information are based on numerous assumptions regarding present
and future business strategies and the environment in which the
Company will operate in the future, including the demand for its
products, the ability to successfully develop software, that there
will be no regulation or law that will prevent the Company from
operating its business, anticipated costs, the ability to secure
sufficient capital to complete its business plans, the ability to
achieve goals and the price of bitcoin. Given these risks,
uncertainties and assumptions, you should not place undue reliance
on these forward-looking statements.
The securities of DMG are considered highly
speculative due to the nature of DMG's business.
Factors that could cause actual results to
differ materially from those in forward-looking statements include,
failure to obtain regulatory approval, the continued availability
of capital and financing, equipment failures, lack of supply of
equipment, power and infrastructure, failure to obtain any permits
required to operate the business, the impact of technology changes
on the industry, the impact of Covid-19 or other viruses and
diseases on the Company's ability to operate, secure equipment, and
hire personnel, competition, security threats including stolen
bitcoins from DMG or its customers, consumer sentiment towards
DMG's products, services and blockchain technology generally,
failure to develop new and innovative products, litigation,
increase in operating costs, increase in equipment and labor costs,
decrease in the price of Bitcoin, failure of counterparties to
perform their contractual obligations, government regulations, loss
of key employees and consultants, and general economic, market or
business conditions. Forward-looking statements contained in this
news release are expressly qualified by this cautionary statement.
The reader is cautioned not to place undue reliance on any
forward-looking information. The forward-looking statements
contained in this news release are made as of the date of this news
release. Except as required by law, the Company disclaims any
intention and assumes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Additionally, the Company undertakes no
obligation to comment on the expectations of, or statements made by
third parties in respect of the matters discussed above.
All information in this new release concerning
Brane has been provided for inclusion herein by Brane. Although DMG
has no knowledge that would indicate that any information contained
herein concerning Brane is untrue or incomplete, DMG assumes no
responsibility for the accuracy or completeness of any such
information.
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