BLOK Technologies Announces $4.8M Closing of Over-Subscribed Second and Final Tranche of Non-Brokered Private Placement
BLOK Technologies Inc. (CSE:BLK) (FRANKFURT:2AD) is pleased to announce that it has closed the second and final tranche of a Non-Brokered Private Placement (the “Private Placement”) raising gross proceeds of $4,857,500 from the issuance and sale of 24,287,500 Units at a price of $0.20 per Unit. No new insiders were created, nor has any change of control occurred, as a result of this Private Placement.
The Private Placement was over-subscribed and raised a total of $5,403,384 of the proposed $5,000,000 previously announced on June 1, 2018.
Each Unit at a purchase price of $0.20 per Unit, consists of one (1) common share (“Common Share”) of the Company and one (1) transferable share purchase warrant (“Warrant”).
Rob Dawson, President and CEO commented, “BLOK Technologies’ vision is to develop leading-edge, global solutions that employ blockchain technology. In completing this $5.4M financing, we are taking our company to the next level in the execution of its business model. We are very pleased that key investors have joined us on this journey and we look forward to advancing our worldwide investment projects with top-level strategic partners.”
Each Warrant will entitle the holder to acquire one (1) Common Share at an exercise price of $0.50 for a period of 24 months from the closing date of the Private Placement. The Warrants will be subject to an acceleration right (the “Warrant Acceleration Right”) if on any ten (10) consecutive trading days, beginning on the date that is four (4) months and one (1) day following the Closing Date, the daily volume weighted average trading price of the Company’s Common Shares on the Canadian Securities Exchange is greater than $0.75. If the Company exercises its Warrant Acceleration Right, the new expiry date of the Warrants will be the 30th day following the date hereafter referred to as the (“Eligible Acceleration Date”) on which such notice is given by the Company.
These Common Shares and Warrants issued under the second tranche of the Private Placement will be subject to a four month and one day resale restriction expiring October 9, 2018. Completion of the financing is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the Canadian Securities Exchange (“CSE”).
The Company intends to use the net proceeds of the Private Placement for the advancement of the Company’s blockchain investment projects that are currently in the pipeline, evaluating new blockchain opportunities as part of its business model and for working capital purposes.
About BLOK Technologies Inc.
BLOK Technologies Inc. is a public company that invests in and develops emerging companies in the blockchain technology sector. The Company’s approach is to provide capital, technology and management expertise to the companies it develops. With core technology being developed for the leading cannabis supply chain integrity network, BLOK Tech continues to grow its business into adjacent industries and emerging technologies. The Company systematically identifies early-stage technologies with potential to disrupt and innovate within their industry and invests the necessary resources to ensure the success of their projects.
For additional information regarding BLOK Technologies and other corporate information, please visit the Company’s website at BLOKTECHINC.COM
ON BEHALF OF THE BOARD OF DIRECTORS
President & CEO
For further information, please contact:
James Hyland, B.Comm.
Vice President Corporate Development, Director
Statements in this news release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. There are no assurances the company can fulfill such forward-looking statements and the company undertakes no obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing the company, some of which are beyond the company’s control.