Breaking News: Scorpion Resources closes $10-million Tranche of Financing

SCORPION ANNOUNCES CLOSING OF FIRST TRANCHE OF PRIVATE PLACEMENT OF SUBSCRIPTION RECEIPTS FOR PROCEEDS OF $10 MILLION

Further to its news releases of Jan. 16, 2018, and Feb. 27, 2018, Scorpion Resources Inc. (TSX-V: SR.H) has closed the first tranche of its $10.5-million non-brokered private placement. In connection with the first tranche closing, the company issued 33,333,333 subscription receipts at a price of 30 cents per subscription receipt for gross proceeds of $10-million. In the event that the company completes the acquisition of Blockstrain Technology Corp. on or before May 31, 2018, then each subscription receipt will be automatically converted, for no additional consideration, into one common share in the capital of the company.

The company is expecting to close a second tranche of the offering for gross proceeds of up to an additional $500,000 prior to the closing of the transaction. The proceeds of the offering will be held in escrow pending satisfaction of the escrow release condition at which point they will be delivered by the escrow agent to the company. If the escrow release condition is not satisfied by May 31, 2018, the proceeds will be returned to the subscribers. Following the closing of the transaction, the proceeds of the offering are expected to be used for technology development and licensing, corporate and business development, blockchain and smart contract development, smart hub API development, and general working capital purposes.

The subscription receipts and any shares issued upon conversion thereof will be subject to a hold period expiring four months and one day after the closing of the applicable tranche of the offering. Cash finders' fees will be paid to certain finders following satisfaction of the escrow release condition.

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