Vancouver, British Columbia –– Further to its press release of February 3rd, 2021, iMining Blockchain and Cryptocurrency Inc. (TSX-V: IMIN) (the “Company” or “iMining”) announces revisions to its part and parcel financing which accompanies its proposed acquisition of all the issued and outstanding securities of CanETH Staking Services Inc., a private Ontario corporation (“CanETH”), (the “Acquisition”).
Financing
One of the conditions of the Acquisition requires iMining to complete a financing. iMining intends to complete a private placement to raise gross proceeds of up to $2,155,000 (the “Financing”), through the issuance of up to 17,240,000 units (the “Units”) at $0.125 per Unit. Each Unit will be comprised of one iMining Share and one-half of one common share purchase warrant (“Warrant”), with each whole Warrant entitling the holder to purchase one iMining Share at a price of $0.245 per share for a period of two years, provided that in the event the closing price of the iMining Shares is equal to or greater than $0.45 per share for 20 consecutive trading days, the Company may, by notice to the Warrant holders (which notice may be by way of general news release), reduce the remaining exercise period of the Warrants to not less than 30 days following the date of such notice.
Proceeds of the Financing will be applied as follows:
| Operating Expenses (includes additional headcount) | $ 540,000 |
| Hardware Costs – incl. Server rental space (i.e. Google/Amazon) |
425,000 |
| Software Engineers (Software Development) |
360,000 |
| Infrastructure & Tech development (15,000 validators) |
375,000 |
| CORPORATE: |
|
| General and Administration (12 months), including costs of the transaction |
280,000 |
| Financing costs, filing fees and commissions |
175,000 |
| Total | $ 2,155,000 |
In accordance with TSX Venture Exchange (the “TSXV”) policies, finders’ fees and commissions may be payable to eligible finders for the portion of the Financing attributable to their efforts.
The Acquisition will constitute a fundamental acquisition under TSXV Policy 5.3, and as such it will require approval of the TSXV. As the transaction is arm’s length and there is not expected to be any new control persons created, it is not expected that the shareholders of iMining will be required to approve the Acquisition. Trading of iMining’s Shares on the TSXV has remained halted until the earlier of satisfactory review of the proposed transaction by the TSXV or closing of the transaction.
Both the closing of the Acquisition and the Financing are subject to the approval of the TSX Venture Exchange.
See news release dated February 3, 2021 for details on the business of CanETH and the terms and conditions of the Acquisition. Further details regarding new management, CanETH and its business will follow in subsequent news releases.
There is no material fact or material change about the Company that has not been generally disclosed.
ON BEHALF OF THE BOARD
Signed “Robert Eadie”
Robert Eadie, Chief Executive Officer and Director
FOR FURTHER INFORMATION PLEASE CONTACT:
Contact: Robert Eadie
Telephone: 1-604-602-4935 t Facsimile: 1-604-602-4936
Email: investor@imining.com
Website: www.imining.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
