HIVE Blockchain Technologies have announced conducting a private placement of convertible debentures with U.S. Global Investors Ltd. fund for $15 million. The debentures will mature 60 months from the date of issuance. The interest rate stands at 8% p.a. payable monthly while the principal is payable quarterly. HIVE Blockchain was the last trading at $2.47 on TSX Venture.
The debentures will be issued at face value, with each debenture being redeemable by HIVE at any time. Additionally, U.S. Global Investors will also be issued 5 million common share purchase warrants. Each whole warrant will enable U.S. Global Investors to acquire one common share at an exercise price of CAD 3.00 per share for a three years period from closing.
In an announcement release, Frank Holmes, Interim Executive Chairman of HIVE, stated:
The debentures were raised following the U.S. Global Investors selling $20.8 million worth of securities in the firm. U.S. Global Investors (Canada) Ltd. fund sold out its entire 8.5 million share position over a period from Dec 18 through to Dec 22.
This comes as a significant gain considering the shares were originally purchased at a price of just $0.30 per unit under HIVE’s initial public transaction on September 7, 2017. The net proceeds from the transactions will be used for general corporate purposes and working capital.