Blockchain Foundry Closes CAD$10 Million Private Placement with Institutional Investors

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TORONTO, March 10, 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 its previously announced private placement of equity securities (the “Private Placement”). The Private Placement was for gross proceeds of approximately CAD$10,055,000 and consisted of the sale of 29,792,595 common shares (“Common Shares”) and warrants to purchase up to 29,792,595 Common Shares (“Warrants”), at a purchase price of CAD$0.3375 per Common Share and associated Warrant. The Warrants have an exercise price of CAD$0.45 per Common Share and may be exercised at any time prior to the fifth-year anniversary of the issuance date.

H.C. Wainwright & Co. acted as the exclusive placement agent for the Private Placement.

The net proceeds of the Private Placement will be used by the Company for working capital and general corporate purposes, including, without limitation, hiring of development and other personnel, marketing the Company’s products and services and repayment of debt.

H.C. Wainwright & Co. was paid a cash commission of 8.0% of the gross proceeds raised in the Private Placement and was issued warrants (the “Broker Warrants”) to purchase up to 2,383,408 Common Shares. Each Broker Warrant has an exercise price of CAD$0.45 per Common Share and may be exercised at any time prior to the fifth-year anniversary of the issuance date.

Early Warning Disclosure

Prior to the Private Placement, Daniel Wasyluk, the Chief Executive Officer of the Company, held 8,224,444 Common Shares and 850,000 stock options (“Options”), representing approximately 10.3% of the Company’s issued and outstanding Common Shares on a partially-diluted basis. Following completion of the Private Placement, Mr. Wasyluk holds 8,224,444 Common Shares and 850,000 Options, representing approximately 7.7% of the Company’s issued and outstanding Common Shares on a partially-diluted basis.

Prior to the Private Placement, Jag Sidhu, the Chief Technology Officer of the Company, held 8,224,444 Common Shares and 850,000 stock options (“Options”), representing approximately 10.3% of the Company’s issued and outstanding Common Shares on a partially-diluted basis. Following completion of the Private Placement, Mr. Sidhu holds 8,224,444 Common Shares and 850,000 Options, representing approximately 7.7% of the Company’s issued and outstanding Common Shares on a partially-diluted basis.