Breaking News: Global Blockchain Closes Acquisition of Coinstream

GLOBAL BLOCKCHAIN TECHNOLOGIES CORP. (OTC: BLKCF) (CSE: BLOC) is pleased to announce that it has closed the acquisition of Coinstream Mining Corp. (“Coinstream”) previously announced on February 13, 2018, by way of a three-corner amalgamation. Under the terms of the definitive acquisition agreement (the “Agreement”), BLOC acquired 100% of Coinstream and assumed all of its existing assets and underlying agreements at present, including:

  • The Manitoba joint venture facilities totaling 50 MW of capacity, with 35 MW of capacity available immediately. BLOC's subsidiary, Global Blockchain Technologies Corp., will supply cryptocurrency mining units on the basis of a 70/30 split in favour of BLOC.
  • The wholly-owned Mozambique facility totaling 25 MW of capacity, with 10 MW of capacity available immediately.  The Mozambique facility will host BLOC machines and/or seek joint ventures for the rapid procurement of cryptocurrency miners. These facilities have an average power cost of USD$.03 per KwH.  
  • A 25% interest in Distributed Mining Inc. ("Distributed Mining").  Distributed Mining is a blockchain software company creating software that enables all devices to have the ability to participate in mining cryptocurrency. The software will be available to be downloaded through Distributed Mining, or through its partner sites. Connected devices will then be able to activate mining operations through their devices (including but not limited to mobile phones and gaming consoles).

Distributed Mining would allow anyone with a connected device to download and install a software packet, giving the user access to optimized cryptocurrency mining. The distributed mining platform will be able to optimize for variable mining requirements, and its design is particularly well suited for gaming consoles, of which there are over 100 million currently connected units. Gaming consoles contain stronger processing power than that found in typical laptop/desktop computers, making them the perfect environment to deploy the distributed mining platform as individuals are able to put their resting consoles to work, earning them valuable cryptocurrency tokens.

Both the Manitoba and Mozambique facilities are managed by personnel who are seasoned in the operation of cryptocurrencies, providing a turnkey and lean solution to BLOC.

The Company issued 32.5 million shares to the Vendors of Coinstream to satisfy the terms of the Agreement. No finder’s fees were paid on this transaction.

The Company has also closed a private placement of 9,090,909 units (“Units”) for gross proceeds of $5,000,000. Each Unit consists of one common share issued at $0.55 per share (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant may be exercised by the holder to purchase an additional Share at a price of $0.75 for 24 months from closing.

The net proceeds of the Private Placement will be used towards investment in or incubation and creation of new blockchains in partnership with leading brands and industry participants whose principal areas of business truly merit and benefit from decentralization and the blockchain. In addition the Company will evaluate new projects and possible acquisition(s) of other target Companies and general working capital.

The Units have a four-month hold period expiring on July 2, 2018. No finder’s fees were paid in connection with the Unit issuances.

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