DMG Blockchain Solutions Announces CDN$28.1 Million Private Placement Offering with Institutional Investors
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, April 28, 2021 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSXV: DMGI) (DMGGF: OTCQB) (FSE: 6AX) ("DMG" or the "Company"), a vertically integrated blockchain and
cryptocurrency technology company is pleased to announce that it has entered into a securities purchase agreement for a private placement of its common shares ("Common Shares") and warrants to
purchase common shares ("Warrants") to institutional investors only for aggregate gross proceeds to the Company of approximately Cdn$28.1 million (the "Private Placement"). Pursuant to the Private
Placement, the Company will issue 22,297,644 Common Shares and Warrants to purchase up to 22,297,644 Common Shares at a purchase price of Cdn$1.26 per Common Share and associated Warrant. Each
Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of Cdn$1.50 per Common Share at any time prior to the three-year anniversary of the closing date of the
Private Placement (the "Closing Date").
H.C. Wainwright & Co. is acting as the exclusive placement agent for the private placement in the United States.
The Common Shares and Warrants to be issued under the Private Placement will be qualified by way of a prospectus supplement under the Company's base shelf prospectus dated March 1, 2021 (collectively, the "Prospectus Supplement") which will be filed in each of the provinces of Canada, except Québec. In the United States, the Common Shares, Warrants and the shares issuable upon the exercise of the Warrants will be offered on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and certain other jurisdictions in accordance with applicable securities laws.
The net proceeds of the Private Placement are expected to be used by the Company for infrastructure expansion and equipment purchases, investment in cryptocurrencies, potential future acquisitions and partnerships, software development, expansion of marketing and sales activities and working capital and general corporate purposes. Details as to the specific allocation of the proceeds will be disclosed in the Prospectus Supplement.
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