Hydro66 Announces Fully Allocated Private Placement Financing
MENAFN – Newsfile Corp) Hydro66 Announces Fully Allocated Private Placement Financing
Boden, Sweden–(Newsfile Corp. – June 25, 2019) – Hydro66 Holdings Corp. (CSE: SIX) (OTCQB: HYHDF) (“Hydro66” or the “Company”) is pleased to announce a fully allocated non-brokered private placement financing (the “Offering”) of up to 6,000,000 units of the Company (the “Units”) at a price of C$0.50 per Unit (the “Unit Price”) for gross proceeds of up to C$3,000,000. EMD Financial Inc. is acting as finder for the Offering.
The net proceeds from the offering will be used to purchase additional ASIC + GPU equipment to expand the Company’s blockchain services operations at its award-winning data centre as well as for general working capital and corporate purposes.
The Company anticipates insider participation in the Offering for up to 2,000,000 Units. The issuance of those Units to the insiders will be considered related party transactions within the meaning of Multilateral Instrument 61-101 (“MI 61-101”). The Company intends to rely on the exemptions from the requirements of MI 61-101 in respect of any insider participation.
Each unit will be comprised of one common share (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one additional Share of the Company at an exercise price of C$0.75 for a period of 24 months from the closing of the Offering. The Units will be made available by way of prospectus exemptions in Canada and in such other jurisdictions as the Company may agree where the Units can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements.
Closing of the Offering is subject to regulatory approval including that of the Canadian Securities Exchange (“CSE”).The Company will pay a finder’s fee on the Offering within the amount permitted by the policies of the CSE.
All securities issued in connection with the Offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.
With respect to the Company’s announcement on May 30, 2019, Hydro66 is continuing its diligence concerning the proposed merger with Whinstone US Inc.