U.S. Global Investors (GROW), an investment management firm, climbed by 5.6% after trading HIVE shares. It is revealed that the firm has sold 10 million shares of HIVE Blockchain Technologies. With this sale, it is able to make gains of around $18 million.
U.S. Global Investors has also revealed that they will be reinvesting $15 million of this gain into HIVE. This will be done through a process of the private placement of unsecured convertible bonds and this will be done under the regulation of TSX Venture Exchange.
Frank Holmes, CEO of the U.S. Global Investors, has claimed that none of the shares was sold by him personally. He is also an interim executive chairman of HIVE Blockchain Technologies. He stated:
“By repositioning our investment in HIVE, we seek to continue participating in the crypto-mining ecosystem while lowering much of the volatility of our investment portfolio.”
The maturing period of debentures is 60 months from the date of issuance, as revealed by the firm. This will bear the interest rate of 8% per year and it will be paid each month.
It has also been revealed that the U.S. Global Investors are expected to issue 5 million common share purchase warrants. In each warrant, GROW is meant to acquire one common share in HIVE and this acquisition will be at the price of C$3.00 for a total of three years. As per the announcement by the firm, the net proceeds from this will be used for several corporate purposes and working capital as well. This issuance is expected to close on Thursday, December 31, 2020. Recently, on December 24, HIVE Blockchain has also launched a private placement of the convertible bonds.