VANCOUVER, British Columbia, May 17, 2018 (GLOBE NEWSWIRE) -- BLOK Technologies Inc. ("BLOK Tech" or the "Company") (CSE:BLK) (FRANKFURT:2AD) is pleased to announce that it has closed the first tranche of a Non-Brokered Private Placement (the "Private Placement") raising gross proceeds of $545,884 from the issuance and sale of 2,729,424 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.
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) non-transferable share purchase warrant ("Warrant").
Rob Dawson, President and CEO commented, "We are pleased to be completing this first tranche of our financing, and to expand our shareholder base to include additional investors who are enthusiastic about the potential for blockchain technology. This financing is a significant milestone for BLOK Tech as we continue to build shareholder value and advance projects worldwide."
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 first tranche of the Private Placement will be subject to a four month and one day resale restriction expiring September 15, 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").
In connection with the Private Placement, BLOK Tech has paid certain eligible persons (the “Finders”) a cash commission equal to $17,600 and also issued 88,000 warrants ("Finder's Warrants"). Each Finder's Warrant has the same terms as the Warrants issued under the Offering.
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 and will also be evaluating new blockchain opportunities as part of its business model.
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.