Transeastern Power Trust Announces $40 Million Private Placement Offering, Debt Recapitalization and Proposed Change of Name to Blockchain Power Trust

TORONTO, ONTARIO--(Marketwired - Dec. 12, 2017) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Transeastern Power Trust ("Transeastern" or the "Trust") (TSX VENTURE:TEP.UN)(TSX VENTURE:TEP.DB) is pleased to announce that it has entered into an agreement with a syndicate of agents led by GMP Securities L.P. and Haywood Securities Inc. and including PI Financial Corporation and AltaCorp Capital Inc. (collectively, the "Agents") for a best efforts private placement offering of up to 83,333,333 units ("Units") of the Trust at a price of $0.48 per Unit (the "Issue Price") for aggregate gross proceeds of up to $40,000,000 (the "Offering").

Each Unit shall consist of one trust unit of the Trust (each a "Trust Unit") and one-half of one trust unit purchase warrant (each whole trust unit purchase warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire one Trust Unit at an exercise price of $0.80 per Trust Unit for a period of twenty-four months from the closing date of the Offering (the "Closing"). The Warrants contain an acceleration provision pursuant to which the Trust has the option to force conversion at any time after the first four months following closing of the Offering if the weighted average daily trading price of the Trust Units on the TSX Venture Exchange (the "TSXV") is $1.50 or more for 10 consecutive trading days.

The Trust will grant the Agents an over-allotment option (the "Over-Allotment Option"), exercisable in whole or in part at any time up to 48 hours prior to close, to purchase such number of additional Units that is equal to 25% of the Units sold pursuant to the Offering. If the Offering is successfully completed, and the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering will be up to $50,000,000.

Upon Closing, the Trust will pay the Agents a cash fee equal to 7.0% of the aggregate gross proceeds of the Offering. As additional consideration for its services, the Agents shall be issued such number of non-transferrable compensation options (each a "Compensation Option") equal to 7.0% of the number of Units sold pursuant to the Offering (including pursuant to the Over-Allotment Option). Each Compensation Option will entitle the holder thereof to acquire one Unit at the Issue Price at any time prior to the date that is twenty-four months following the Closing.