VANCOUVER, British Columbia, June 01, 2018 (GLOBE NEWSWIRE) -- BLOK Technologies Inc. ("BLOK Tech" or the "Company") (CSE:BLK) (FRANKFURT:2AD) wishes to announce today that due to investor demand, the Company is increasing the size of the amended Non-Brokered Private Placement (the "Private Placement") previously announced to the market on May 1, 2018.
The Private Placement, which was originally planned to raise gross proceeds of up to C$1,000,000, will be increased by up to C$4,000,000 and now will consist of up to 25,000,000 units (the “Units”) of the Company at a price of $0.20 per Unit (the “Unit Issue Price”) to raise up to C$5,000,000 to be sold by the Company by private placement (the “Offering”). Each Unit will consist of one (1) common share (a “Common Share”) of the Company and one (1) common share purchase warrant (a “Warrant”) exercisable into one (1) Common Share of the Company at an exercise price of $0.50 per Warrant for a period of 24 months from the Closing Date.
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.
“We’re pleased to have attracted additional investor interest in our company,” said BLOK Tech CEO Rob Dawson. “This financing further enhances our ability to execute the blockchain development projects in hand and explore the many investment opportunities we are identifying in the blockchain sector.”
The Offering is not subject to a minimum aggregate amount of subscriptions. A portion or all of the Offering may be completed pursuant to BC Instrument 45-536 – Exemption from Prospectus Requirement for Certain Distributions Through an Investment Dealer (“BCI 45-536”) and the corresponding blanket orders and rules implementing BCI 45-536 in the participating jurisdictions in respect thereof (collectively with BCI 45-536, the “Investment Dealer Exemption”). As of the date hereof, the Investment Dealer Exemption is available in each of British Columbia, Alberta, Saskatchewan, Manitoba and New Brunswick under separate local instruments. Pursuant to BCI 45-536, each subscriber relying on the Investment Dealer Exemption must obtain advice regarding the suitability of the investment from a registered investment dealer.
The first tranche of a Non-Brokered Private Placement (the “Private Placement”) was closed on May 17, 2018, raising gross proceeds of $545,884 from the issuance and sale of 2,729,424 Units at a price of $0.20 per Unit. These Common Shares and Warrants issued under the first tranche of the Private Placement will be subject to a four month and one day resale restriction expiring September 15, 2018.
All Common Shares and Warrants issued under the second tranche of the Private Placement will be subject to a statutory hold period expiring four months and one day after closing of the financing. 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 may, in its sole discretion, pay a finder’s fee within CSE policy guidelines in connection with the Private Placement.
BLOK Tech intends to use the net proceeds from the Offering for the development of emerging blockchain technology, investment in strategic opportunities as well as for general 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
For further information, please contact:
James Hyland, B.Comm.
Vice President Corporate Development, Director
(604) 442-2425
jamie@bloktechinc.com
ON BEHALF OF THE BOARD OF DIRECTORS
“Robert Dawson”
President & CEO
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.