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CryptoGlobal Terminates Special Warrant
Financing
TORONTO, March 1, 2018 /CNW/ - CryptoGlobal Corp. (TSXV:
CPTO) announced today that it is entering into an agreement with a
strategic investor that will provide up to CAD $15 million of financing subject to CryptoGlobal
meeting certain due diligence requirements.
The net proceeds received by the company will be used to build
out CryptoGlobal's growing mining operations and to accelerate the
growth of Blockchain Dynamics Inc. (pending completion of the
acquisition) confirms CryptoGlobal CEO Rob
Segal.
"This show of financing support strengthens the company's vision
to build a leading Canadian FinTech company, that includes
custodial, proprietary trading, exchange, insights and content —
underpinned by a diversified cryptocurrency mining operation," he
says.
Special Warrant Financing Terminated
CryptoGlobal
announces that it has terminated its previously announced brokered
private placement offering of special warrants for gross proceeds
of up to CAD $10 million.
Description of New Financing
CryptoGlobal has agreed
to enter into a secured credit facility with a strategic investor
in the amount of up to CAD $15
million to be drawn in tranches of CAD $5 million each at CryptoGlobal's option (the
"Credit Facility"). Each tranche of the Credit Facility will
have a term of two years and bear interest, when amounts are drawn,
at the rate of 10% per annum, payable quarterly. In consideration
for the Credit Facility, the company will pay a standby set-up fee
of CAD $750,000 on closing.
The first tranche of CAD $5
million (the "Tranche 1 Loan") will be drawn on
closing which is expected to occur in the first half of March,
2018, subject to settling definitive documentation, completion of
satisfactory due diligence on the part of the investor and the
approval of the TSX Venture Exchange (the "TSXV"). Amounts
outstanding under the Tranche 1 Loan will be convertible at the
option of the investor into units of the company ("Units")
at a conversion price of CAD $1.00
per Unit. Each Unit will consist of one common share of the company
(a "Common Share") and three-quarters of one common share
purchase warrant (each whole warrant, a "Warrant"). Each
Warrant will be exercisable to acquire one Common Share (a
"Warrant Share") for a period of two years following the
date of issuance at an exercise price of CAD $1.00 per Warrant Share.
Terms relating to the conversion of subsequent tranches
under the Credit Facility will be determined in the context of the
market, if and when the company decides to draw on
the remaining tranches of the Credit Facility.
Any securities issued by the company on the closing of the
Credit Facility, as well as any securities issued upon conversion
of the Tranche 1 Loan or in connection with any subsequent tranches
under the Credit Facility, will be subject to a statutory four
month and one day hold period.
CryptoGlobal – We Power the Blockchain
CryptoGlobal is a leading Canadian blockchain and financial
technology company that includes custodial, proprietary trading,
exchange, insights and content — underpinned by a diversified
cryptocurrency mining operation.
Our team self-mines and offers hosting for a diverse portfolio
of cryptocurrencies from one of Canada's largest and most efficient mining
operations. CryptoGlobal focuses on mining Bitcoin, DASH, Ether and
Litecoin.
Learn more about CryptoGlobal and the future of mining at
www.cryptoglobal.io
Cautionary Note Regarding Forward Looking Information
This news release contains certain forward-looking
information and forward-looking statements within the meaning of
the applicable Canadian securities legislation. All statements,
other than statements of historical fact, are forward-looking
statements and are based on expectations, estimates and projections
as at the date of this news release. Any statement that involves
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions, future events or
performance (often but not always using phrases such as "expects",
or "does not expect", "is expected", "anticipates" or "does not
anticipate", "plans", "budget", "scheduled", "forecasts",
"estimates", "believes" or "intends" or variations of such words
and phrases or stating that certain actions, events or results
"may" or "could", "would", "might" or "will" be taken to occur or
be achieved) are not statements of historical fact and may be
forward-looking statements. In this news release, forward-looking
statements relate, among other things, to: the timing and
completion of the Credit Facility; receipt of all regulatory
approvals, and the use of proceeds of the Credit Facility and the
Tranche 1 Loan, including the company's future growth plans
and the successful completion of the Blockchain Dynamics Inc. and
BitCity Inc. acquisitions.
These forward-looking statements are based on reasonable
assumptions and estimates of management of the company at the time
such statements were made. Actual future results may differ
materially as forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the company to materially
differ from any future results, performance or achievements
expressed or implied by such forward-looking statements.
Such factors, among other things, include: fluctuations in
general macroeconomic conditions; fluctuations in securities
markets; fluctuations in the prices of cryptocurrencies mined by
the company; historical prices of cryptocurrencies and the ability
of the company to mine cryptocurrencies consistent with historical
prices; the presence of laws and regulations that may impose
restrictions on the ability of the company to operate it business;
the speculative nature of cryptocurrency mining and blockchain
operations; changes in project parameters as plans continue to be
evaluated; and those factors described under the heading "Risks
Factors" in the company's most filing statement dated January 17, 2018 available on SEDAR. Although the
forward-looking statements contained in this news release are based
upon what management of the company believes, or believed at the
time, to be reasonable assumptions, the company cannot assure
shareholders that actual results will be consistent with such
forward-looking statements, as there may be other factors that
cause results not to be as anticipated, estimated or intended.
Accordingly, readers should not place undue reliance on
forward-looking statements and information. There can be no
assurance that forward-looking information, or the material factors
or assumptions used to develop such forward-looking information,
will prove to be accurate. The company does not undertake any
obligations to release publicly any revisions for updating any
voluntary forward-looking statements, except as required by
applicable securities law.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this news
release.
SOURCE CryptoGlobal Corp.