HIVE Blockchain Technologies Ltd (TSX-V: HIVE) has agreed to buy the issued and outstanding shares of Kolos Norway AS, a Ballangen, Norway-based data centre property powered by renewable energy. The deal, scheduled to close within 60 days, reflects a total consideration of US$9.9 million, 4.75 million common shares and 1.25 million warrants. HIVE, a Vancouver-based developer of blockchain infrastructure, said Kolos will be its flagship data centre project in the years ahead. The company, which also has assets in Iceland and Sweden, last October raised $7 million in a deal with strategic investor Genesis Mining Ltd.
PRESS RELEASE
HIVE Blockchain to Acquire Kolos Norway AS; Build Major Data Centre
64-Hectare Property in Ballangen, Norway with Excellent Access to Renewable Hydroelectricity
BALLANGEN, Norway and VANCOUVER, March 26, 2018 /PRNewswire/ – HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (OTC:HVBTF) (the “Company” or “HIVE”) and Kolos Norway AS (“Kolos”) are pleased to announce that they have entered into a series of agreements (the “Agreements”) pursuant to which HIVE has agreed to acquire all of the issued and outstanding shares of Kolos through the acquisition of another Norwegian entity for total consideration of approximately US$9.9 million, 4,750,000 common shares and 1,250,000 warrants (the “Norway Acquisition”).
“This is another major milestone in our continuing global expansion as a leading blockchain and cryptocurrency infrastructure company,” said Harry Pokrandt, CEO and Director of HIVE. “Kolos will be a flagship data centre project for HIVE for years to come and has the potential to expand to more than 1.0 GW, or 1,000 MW, of green hydroelectricity consumption dedicated to blockchain infrastructure. For context, our advanced mining operations in Iceland and Sweden will collectively represent 44.2 MW of consumption – also from green sources. This acquisition provides HIVE with significant flexibility for long-term growth. Our vision is to scale the project in phases to be among the largest and most energy-efficient data centres in the world. We continue to explore non-dilutive financing alternatives to commence the build-out as soon as possible.”
HIVE is committed to being a leader in building a clean energy future for the blockchain industry. The Kolos project, which will be run on 100% green, renewable power, is a major project demonstrating this commitment. Kolos’ primary asset is a 64-hectare property located in Ballangen, Norway, approximately 225 kilometres north of the Arctic Circle, and ideally situated for the construction of a large-scale, climate-cooled data centre. The property is in close proximity to infrastructure with excess capacity to provide HIVE with a supply of more than 1.0 gigawatt (“GW”), or 1,000 megawatts (“MW”), of hydroelectricity at highly competitive rates, and access to reliable, high speed internet. HIVE and its strategic partner, Genesis Mining Ltd. (“Genesis”), are developing a plan to construct an initial facility on the property accessing 30 MW of this capacity, which is available to HIVE immediately. It is expected that 120 MW of the total capacity will be available to HIVE within a year. Kolos has completed preliminary permitting with the local municipality, which strongly supports the project.
Under the Agreements, HIVE will pay aggregate cash consideration in the amount of NOK 55,600,000 (US$7,225,000) using cash on hand, assume NOK 20,915,000 (US$2,719,000) of liabilities, and issue 4,750,000 common shares of the Company and 1,250,000 warrants to purchase common shares of the Company (the “Warrants”). The Warrants and 2,650,000 common shares of the Company to be issued are subject to vesting provisions. The Warrants will be exercisable for a period of 5 years from the date of issuance and have an exercise price to be set at the closing of the Norway Acquisition.
Closing of the Norway Acquisition is subject to a number of customary closing conditions, including the approval of the TSX Venture Exchange, and must close within 60 days. Securities of the Company issued pursuant to the Norway Acquisition are subject to a hold period of four months plus one day from the date of issuance.
Appointment of Additional Director
HIVE is pleased to announce the appointment of Marcus New as an additional member of the Board of Directors of the Company. Mr. New is an entrepreneur who has been involved in building a number of businesses disrupting the capital markets over the past 20 years. He is the founder and chairman (and previously the CEO) of Stockhouse Publishing, Canada’s leading financial community and a global hub for affluent investors, with over 1 million unique monthly visitors. Prior to launching Stockhouse, Marcus founded and built Stockgroup Media, an online information company whose client base consisted of 13 of the top 25 Canadian brokerage firms, 14 of the top 15 global institutional sales desks, and over 200 hedge funds. In 2014, Mr. New became Chairman of Stockhouse to become Chief Entrepreneur of Investx Capital Ltd, the first cross border global online private equity and venture capital platform. Mr. New has a bachelor’s degree in Business from Trinity Western University and has graduated from the Birthing of Giants program at MIT.
In connection with Mr. New’s appointment, he has been granted an aggregate of 250,000 incentive stock options of the Company exercisable at a price of $2.00 per share for a period of 10 years, subject to the approval of the TSX Venture Exchange.
Following this addition, the Board of Directors is comprised of Frank Holmes (Independent Non-Executive Chairman), Harry Pokrandt, Olivier Roussy Newton, Bjoern Arzt, Tobias Ebel, and Marcus New.
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
Photo courtesy of CNW Group/HIVE Blockchain Technologies Ltd