VANCOUVER, British Columbia, April 30, 2020 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (DMGI.V) (DMGGF:OTC US) (6AX.F) (“DMG” or the “Company”), a diversified blockchain and technology company, is pleased to announce it has entered into a business development agreement with Onyx Capital GmbH (“Onyx”) to provide business development and marketing services to the Company. Onyx will be responsible to assist in the preparation of corporate presentations and marketing materials and conducting business development and marketing activities with a specific focus on acquiring new hosting clients from Europe and North America. The agreement has a minimum term of four months.
Daniel Reitzik, the Company’s CEO states “Onyx has an extensive network throughout Europe including business development experts and cryptocurrency institutions looking to partner with companies like DMG in crypto-mining. DMG provides one of the safest and most cost-effective hosting opportunities in North America. We look forward to working with Onyx to bring hosted crypto-mining to the European Union and other regions.”
Onyx intends to participate in a private placement of the Company in the amount of $100,000. The Company also intends to issue Onyx 600,000 stock options at an exercise price of $0.15 for a term of twelve months. The Onyx transaction is subject to regulatory approval.
Subject to all regulatory approvals, the Company intends to complete a non-brokered private placement of 1,481,500 units of the Company at a purchase price of $0.0675 per unit, to raise gross proceeds of up to CDN$100,000 (the “Offering”). Each unit will be comprised of one common share of the Company and one common share purchase warrant (a “Warrant”). Each Warrant will be exercisable to purchase one additional common share of the Company at an exercise price of $0.10 per share for a period of twelve months following the closing of the Offering.
The securities underlying the units issued on closing of the Offering will all be subject to a four-month statutory hold period commencing on the date of issuance. No finder’s fees are payable on this Offering.
The net proceeds from the Offering will be used for sales and marketing activities, as well as general working capital purposes.
The Offering is scheduled to close on or before May 8, 2020 and is subject to certain conditions including receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
The Company also announces it has entered into an agreement with Main Capital GmbH (“Main Capital”) to provide investor relations services to the Company. Main Capital will be responsible to assist in the development of the Company’s investor relations department, assist with and set up broker presentations locally, Canada-wide and internationally; schedule and organize all trade show appearances, and provide input for Company’s marketing, advertising and investor relations programs. Compensation will consist of 100,000 stock options exercisable at $0.15 for a twelve-month term, subject to regulatory approval.
About DMG Blockchain Solutions Inc.
DMG Blockchain Solutions Inc. is a diversified blockchain and cryptocurrency company that manages, operates and develops end-to-end solutions to monetize the blockchain ecosystem. DMG intends to be the global leader in industrial scale crypto mine hosting – Mining as a Service (MaaS), crypto mining, blockchain forensics/analytics, and blockchain platform development.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
On behalf of the Board of Directors,
Daniel Reitzik, CEO & Director
For further information, please contact:
DMG Blockchain Solutions Inc.
Investor Relations: John Martin
Toll Free: 1-888-702-0258
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information based on current expectations. Statements about the Company’s proposed private placement, plans and intentions, other potential transactions, acquisition of customers, product development, events, courses of action, and the potential of the Company’s technology and operations, among others, are all forward-looking information. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, business, economic and capital market conditions; the ability to manage operating expenses, which may adversely affect the Company’s financial condition; the ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; access to equipment; market conditions and the demand and pricing for products; the demand and pricing of bitcoins; security threats, including a loss/theft of DMG’s bitcoins; DMG’s relationships with its customers, distributors and business partners; the inability to add more power to DMG’s facilities; DMG’s ability to successfully define, design and release new products in a timely manner that meet customers’ needs; the ability to attract, retain and motivate qualified personnel; competition in the industry; the impact of technology changes on the products and industry; failure to develop new and innovative products; the ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect the business; the ability to manage working capital; and the dependence on key personnel. DMG may not actually achieve its plans, projections, or expectations. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, the ability to successfully develop software, that there will be no regulation or law that will prevent the Company from operating its business, anticipated costs, the ability to achieve goals and the price of bitcoin. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements.
The securities of DMG are considered highly speculative due to the nature of DMG’s business.
Factors that could cause actual results to differ materially from those in forward-looking statements include, failure to obtain regulatory approval, the continued availability of capital and financing, equipment failures, lack of supply of equipment, power and infrastructure, failure to obtain any permits required to operate the business, the impact of technology changes on the industry, competition, security threats including stolen bitcoins from DMG or its customers, consumer sentiment towards DMG’s products, services and blockchain technology generally, failure to develop new and innovative products, litigation, increase in operating costs, increase in equipment and labor costs, failure of counterparties to perform their contractual obligations, government regulations, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by third parties in respect of the matters discussed above.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.