64-Hectare property provides the Company with significant expansion opportunities
BALLANGEN, Norway and VANCOUVER, May
22, 2018 /CNW/ - 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.
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. is a growth oriented, TSX.V-listed company building a bridge from the blockchain sector to
traditional capital markets. HIVE is strategically partnered with Genesis Mining Ltd. to build the next generation of blockchain
infrastructure. HIVE owns state-of-the-art GPU-based digital currency mining facilities in Iceland and Sweden, which produce newly minted digital currencies like
Ethereum continuously, and provides shareholders with exposure to the operating margins of digital currency mining as well as a
growing portfolio of crypto-coins.
For more information and to register to HIVE's mailing list, please visit www.HIVEblockchain.com. Follow @HIVEblockchain on Twitter and subscribe to HIVE's YouTube channel.
On Behalf Of HIVE Blockchain Technologies Ltd.
"Harry Pokrandt"
President, CEO and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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. "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.
SOURCE HIVE Blockchain Technologies Ltd.
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