Hashchain Technology closes $29.71-million bought deal

HASHCHAIN TSX-KASH TECHNOLOGY ANNOUNCES CLOSING OF $29.7 MILLION BOUGHT DEAL PRIVATE PLACEMENT

Hashchain Technology Inc. has closed its previously announced bought deal private placement offering of units. Eight Capital, as sole bookrunner and co-lead underwriter with Canaccord Genuity Corp., and together with Beacon Securities Ltd., Paradigm Capital Inc., Mackie Research Capital Corp., PI Financial Corp. and Gravitas Securities Inc., acted as the underwriters in connection with the offering of 12,397,661 units for aggregate gross proceeds of $26,035,088. in conjunction with the offering, the company issued 1,750,847 units directly to subscribers from the president’s list, resulting in a total of 14,148,508 units being issued for gross proceeds of $29,711,867. The offering included the partial exercise by the underwriters of their option to purchase additional units of the company prior to the closing of the offering.

Each unit consists of one common share of the company and one common share purchase warrant. Each warrant is exercisable to acquire an additional common share at an exercise price of $2.45 for a period of 24 months following the closing of the offering, subject to acceleration in certain circumstances.

As consideration for their services in connection with the offering, the underwriters received a cash fee in the amount of $1,602,105. The underwriters also received an aggregate of 763,192 compensation warrants. Each compensation warrant is exercisable to acquire one common share at a price of $2.10 per share for a period of 24 months following the closing of the offering.

The company intends to use the net proceeds of the offering for further mining rig purchases, working capital and for general corporate purposes. The securities issued under the offering are subject to a four-month hold period from the date of closing of the offering, in addition to any other restrictions under applicable law.

Pat Gray, chief executive officer and a director of Hashchain, stated: “Closing this financing is a significant milestone for us as we now have sufficient funds to fulfill our previously announced 5,000-rig purchase order. We currently operate 100 Dash mining rigs, and we previously purchased 770 Bitcoin rigs that have now been shipped from China and we expect to be installed next week. Once all rigs are operational, Hashchain will have operational mining of approximately 8.7 megawatts in low-cost and low-temperature environments in North America.”

About Hashchain Technology Inc.

Hashchain is a blockchain mining company and the first publicly traded Canadian cryptocurrency mining company to file a final prospectus supporting highly scalable and flexible mining operations across all major cryptocurrencies. Hashchain taps low-cost North American power, cool climate and high-speed Internet — the trifecta most critical to mining success — to create a competitive position for maximizing the number of mining wins.

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