Blockchain Foundry Announces Private Placement Financing and Provides Corporate Update

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TORONTO, Jan. 06, 2021 (GLOBE NEWSWIRE) -- Blockchain Foundry Inc. (“BCF” or the “Company”) (CSE:BCFN), a leading North American blockchain development firm, is pleased to announce that it has closed a non-brokered private placement (the “Private Placement”) of units (the “Units”) with a group of strategic investors. The Company issued 3,555,556 Units at a price of $0.225 per Unit for gross proceeds of $800,000. Each Unit is comprised of one common share (each a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share (each, a “Warrant Share”) at a price of $0.30 per Warrant Share for a period of 24 months following the closing of the Private Placement. In connection with the Private Placement, the Company will pay a finder’s fee equal to 7% of the gross proceeds of the Private Placement.

As at September 30, 2020, the Company had a cash position of $41,017. The Company subsequently completed private placements on October 6, 2020, November 10, 2020 and November 30, 2020 for aggregate gross proceeds of $450,000. Combined with the current Private Placement, the Company has substantially strengthened its balance sheet and improved its financial flexibility. The proceeds from the Private Placement will be used to accelerate the Company’s product strategy and hire development personnel.

Corporate Update

Product Strategy

To date, all of the Company’s revenue has been from consulting services and custom blockchain development projects. Through the execution of these projects, the Company has developed substantial expertise and IP in blockchain infrastructure, digital token infrastructure and bridging technology to move between independent blockchain ecosystems. The Company intends to leverage this expertise into the development of software products that will add recurring revenue and diversify the Company’s revenue stream. The Company has recently added product management personnel to focus on refining its product roadmap and go to market strategy. In addition, the Company has been engaging with potential industry partners who would be the initial users of any products developed by the Company. Focus areas for the Company’s product strategy are in the areas of blockchain infrastructure, remittances, loyalty applications and digital identities.