BlockchainK2 Corp. BIDCF

Close private placement

[Stockhousemoney]

BlockchainK2 closes $499,376 private placement


2024-04-18 16:40 ET - News Release

Mr. Sergei Stetsenko reports

BLOCKCHAINK2 CLOSES PRIVATE PLACEMENT OFFERING / INVESTMENT BY SERGEI STETSENKO

BlockchainK2 Corp. has closed its non-brokered private placement of 1,884,437 units at a price of 26.5 cents per unit for aggregate gross proceeds of $499,376. Each unit comprises one common share in the capital of the company and one-half of one share purchase warrant. Each unit warrant is exercisable to acquire one additional share at an exercise price of 40 cents per unit warrant share until April 18, 2026, subject to the company's right to accelerate the expiry date if, at any time, the average closing price of the shares on the principal exchange or market on which the shares trade is equal to or greater than $1.25 for 20 consecutive trading days. In the event of acceleration, the expiry date will be accelerated to a date that is 30 days after the company issues the acceleration notice through a news release, provided that the acceleration notice is issued within 10 business days after the end of the particular 20-day period.

All securities issued under and in connection with the Offering are subject to a statutory hold period expiring on August 19, 2024, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.

Sergei Stetsenko ("Stetsenko"), the Chief Executive Officer and a director of the Company, purchased 553,388 Units for consideration of $146,648 pursuant to the Offering. Participation by Stetsenko in the Offering is considered a "related party transaction" pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is exempt from the requirements to obtain a formal valuation and minority shareholder approval in connection with Stetsenko's participation in the Offering in reliance of sections 5.5(a) and 5.7(a) of MI 61-101, respectively, on the basis that participation in the Offering by Stetsenko did not exceed 25% of the fair market value of the Company's market capitalization.

The net proceeds of the Offering will be used for general working capital purposes.

Investment by Sergi Stetsenko

As described above, Stetsenko, of 400 - 837 West Hastings St., Vancouver, BC V6C 3N6, acquired 553,388 Units, comprising 553,388 Shares and 276,694 Unit Warrants, for consideration of $146,648 pursuant to the Offering.

Immediately prior to the closing of the Offering, Stetsenko beneficially owned or controlled 3,737,858 Shares (including 1,283,750 Shares held by CRG Finance AG, a company controlled by Stetsenko), 70,000 Share purchase warrants ("Warrants") and 384,806 stock options ("Options") of the Company, which represented approximately 14.2% of the issued and outstanding Shares on a non-diluted basis and, assuming the exercise of the 70,000 Warrants and 384,806 Options, approximately 15.7% of the issued and outstanding Shares on a partially diluted basis.

Immediately following the closing of the Offering, Stetsenko beneficially owns or controls 4,291,246 Shares, 346,694 Warrants and 384,806 Options, representing approximately 15.2% of the issued and outstanding Shares on a non-diluted basis and, assuming the exercise of the 346,694 Warrants and 384,806 Options, approximately 17.4% of the issued and outstanding Shares on a partially diluted basis.

The securities of the Company held by Stetsenko are held for investment purposes. Stetsenko has a long-term view of the investment and may acquire additional securities of the Company either on the open market, through private acquisitions or as compensation or sell the securities on the open market or through private dispositions in the future depending on market conditions, general economic and industry conditions, the Company's business and financial condition, reformulation of plans and/or other relevant factors.

A copy of Stetsenko's early warning report will appear on the Company's profile on SEDAR+ and may also be requested by mail at BlockchainK2 Corp., 400 - 837 West Hastings St., Vancouver, BC V6C 3N6, Attention: Sergei Stetsenko or phone at [phone].

We seek Safe Harbor.



https://www.stockwatch.com/News/Item/Z-C!BITK-3538076/C/BITK