DMG Blockchain Solutions Inc. Engages in Major Offering

DMG Blockchain Solutions Inc. Engages in Major Offering

VANCOUVER, British Columbia — DMG Blockchain Solutions Inc. (TSXV: DMGI) has initiated a noteworthy underwritten overnight marketed offering of units, demonstrating its commitment to expanding its blockchain ventures. This offering, characterized by its 'best efforts' approach, aligns with DMG’s strategic goals of fostering growth within the blockchain ecosystem.

Details of the Offering

The planned offering involves entering into an underwriting agreement with Canaccord Genuity Corp., which will serve as the lead underwriter and sole bookrunner for this initiative. The Underwriters have been granted an over-allotment option, empowering them to purchase an additional 15% of the total units sold within 30 days after the offering's closing. This flexibility offers a significant advantage, reflecting the anticipated interest in the company’s offerings.

Market Considerations and Use of Proceeds

While the exact size and pricing of the units will be influenced by current market dynamics, the goal is to finalize the offering, which is tentatively set to close around November 19, 2024. The generated net proceeds are earmarked for two primary purposes: the acquisition of six one-megawatt hydro mining containers and general working capital needs.

Hydro Mining Initiative

The move towards hydro mining is part of DMG’s broader strategy to enhance its energy efficiency and sustainability in cryptocurrency mining. By utilizing hydroelectric power, DMG not only reduces operational costs but also aligns with environmentally friendly practices, showcasing the company's commitment to sustainable blockchain solutions.

Legal Framework for the Offering

The offering will proceed through a prospectus supplement to DMG's base shelf prospectus dated October 1, 2024. This legal framework is designed to comply with regulatory requirements across various Canadian provinces, with provisions for private placements in the United States. It's essential for potential investors to be aware that the securities will not be registered under U.S. securities laws and can only be offered subject to specific exemptions.

Company Overview

DMG Blockchain Solutions Inc. operates at the forefront of the blockchain and digital asset space. With a focus on vertically integrated solutions, the company is dedicated to innovating the blockchain ecosystem while ensuring adherence to responsible environmental practices. DMG’s dedication is reflected in its diverse range of services that extend from mining operations to digital asset custody through its subsidiary, Systemic Trust Corporation.

Contact Information

For any inquiries regarding DMG Blockchain Solutions or the latest offering, individuals are encouraged to reach out directly to the company’s leadership. Sheldon Bennett, the CEO, is available at 516-222-2560 or via email at investors@dmgblockchain.com. Additional information can also be found on the company’s official website.

Frequently Asked Questions

What is the main aim of DMG's overnight marketed offering?

The primary goal of DMG’s offering is to secure necessary funds for their recent hydro mining initiative and general corporate purposes.

Who is the lead underwriter for this offering?

Canaccord Genuity Corp. is the lead underwriter and sole bookrunner for DMG's offering.

How does hydro mining contribute to DMG's sustainability strategy?

Hydro mining helps DMG to leverage renewable energy, significantly lowering their carbon footprint and operational costs.

What is included in the units offered by DMG?

The specifics of the units, including their terms and pricing, will be determined based on current market conditions.

Where can investors find more information about DMG?

Investors can access more information about DMG Blockchain Solutions through their official website and through their filings on SEDAR.

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