Toronto-based Blockchain Foundry has secured a drawdown equity financing facility of up to C$4 million. The facility’s provider is U.S. private equity firm Alumina Partners. Blockchain Foundry develops and commercializes blockchain-based business solutions and provides consulting services.
TORONTO, Oct. 06, 2020 (GLOBE NEWSWIRE) — Blockchain Foundry Inc. (“BCF” or the “Company”) (CSE:BCFN), a leading North American blockchain development firm, is pleased to announce that it has entered into an agreement (the “Investment Agreement”) for a drawdown equity financing facility of up to C$4 million over a 24-month period with Alumina Partners (Ontario) Ltd. (“Alumina”), a subsidiary of Alumina Partners LLC, a New York-based private equity firm.
The Investment Agreement provides BCF with fast and flexible access to capital as required. Under the Investment Agreement, the Company has the right to draw down on the facility, at its sole discretion, through tranches of equity private placements of up to C$250,000 each. Each tranche will consist of units (each, a “Unit”), with each Unit comprised of one common share of BCF (each, a “Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant” and collectively, the “Warrants”). The Units will be priced at a discount of 15% to 25% from the then most recent closing price of the Shares on the Canadian Securities Exchange at the time of the applicable Company drawdown notice to Alumina. The exercise price of the Warrants will be set at a 30% premium to the market price of the Shares and will have a term of three years from the date of issuance. Should the 10-day volume weighted average price of the Shares be greater than or equal to 100% of the exercise price of the Warrants, the Company may accelerate the expiry date by providing at least 30 days’ notice to Alumina. There are no standby charges or other upfront fees associated with the Investment Agreement.
A first tranche drawdown of $100,000 was completed concurrent with the execution of the Investment Agreement. The Company issued 952,381 Units at a price of $0.105 per Unit for gross proceeds of $100,000. Each Warrant in this tranche is exercisable into one additional common share at a price of $0.182.
The proceeds from the first drawdown will be used to add development and project management resources at the Company and for general corporate purposes.
“This Investment Agreement provides BCF with additional capital to accelerate our growth strategy and focus on commercialization of our blockchain-related IP. We have an exciting product roadmap and this capital will help us accelerate the timeline to commercialization,” said Dan Wasyluk, CEO of BCF.
“We are excited to support Blockchain Foundry as they advance the development of their product portfolio,” said Adi Nahmani, Alumina’s Managing Member. “Offerings like the Syscoin Ethereum bridge reduce the real cost of iterated transactions. Reducing transaction cost is critical to increasing scalability and encouraging the broader adoption of distributed ledger platforms. The Blockchain Foundry team combines technical expertise with a proven track record of collaborating with effective partners in the space, and we look forward to seeing them continue to transform academic whitepapers into practical, monetizable solutions.”
About Blockchain Foundry Inc.
Blockchain Foundry develops and commercializes blockchain-based business solutions and provides consulting services to corporate clients seeking to incorporate blockchain technology into their businesses.