Exploring DMG Blockchain's $15 Million Unit Financing Deal

DMG Blockchain Solutions Inc. Files for a Major Unit Offering

In an exciting development, DMG Blockchain Solutions Inc. (TSXV: DMGI) recently completed the filing of its prospectus supplement, marking a significant step in their fundraising efforts. This announcement unfolds as the company is primed to execute an overnight marketed unit offering valued at $15,004,300. The offering is backed by a respected syndicate of underwriters, which includes Canaccord Genuity Corp., Roth Canada Inc., and Ventum Financial Corp., who are set to lead this financial initiative.

Understanding the Offering Details

The prospectus supplement outlines the sale of approximately 28,310,000 units priced at $0.53 each. Each unit will consist of a common share and a warrant, allowing investors potential future ownership in the company at an exercise price of C$0.65 for five years after the offering closes. This structure aims to provide both immediate capital and long-term equity potential for investors, aligning with DMG's growth ambitions in the blockchain sector.

Underwriting Agreement Highlights

The underwriting agreement features an over-allotment option, granting underwriters the ability to acquire up to an additional 15% of the units sold. This flexibility is crucial, allowing for adjustments based on demand at the closing of the offering, showcasing the anticipated interest in DMG's growth strategy.

Offering Locations and Compliance

The offering is set to take place in various Canadian provinces, carefully excluding Quebec as part of their compliance strategy. DMG also plans to explore U.S. private placements under the exemptions outlined in the Securities Act of 1933, ensuring they navigate international securities law effectively. This careful approach indicates DMG's strategic foresight in managing global investor relations.

Projected Closing Date

DMG anticipates that the offering will close around November 19, 2024, pending necessary approvals. The TSX Venture Exchange conditionally accepted the listing of the unit shares, warrants, and any associated shares that may arise from the exercise of the over-allotment option, reflecting a strong endorsement from the regulatory body.

Usage of Proceeds from the Offer

The company projects that the net proceeds from this offering will play a pivotal role in their development plans. DMG aims to channel these funds into the acquisition of six one-megawatt hydro mining containers that are expected to enhance their mining capabilities significantly. In addition, these funds will be crucial for general operational expenses and working capital, ensuring the company remains agile and competitive.

About DMG Blockchain Solutions Inc.

DMG is a noteworthy player in the blockchain and data center landscape. With a mission centered on sustainability and innovation, DMG's operations are organized around two key pillars - Core and Core+. Their strategic focus aims to harness blockchain technology's full potential, positioned as a leader in the digital ecosystem through responsible practices and innovative solutions.

Contact Information

For more detailed information regarding DMG's latest offerings, prospective investors can reach out via the following channels. The company encourages inquiries and communication for those interested in understanding more about their operations, financing initiatives, and growth strategies:

Sheldon Bennett, CEO & Director
Tel: +1 778 300 5406
Email: investors@dmgblockchain.com
Web: www.dmgblockchain.com

Frequently Asked Questions

What is the purpose of DMG's latest offering?

The offering aims to raise around $15 million to fund the purchase of hydro mining containers and support general corporate activities.

Who are the underwriters involved?

The underwriters for this offering include Canaccord Genuity Corp., Roth Canada Inc., and Ventum Financial Corp.

How long will the warrants be exercisable?

The warrants will be exercisable for a period of 60 months from the closing date of the offering.

What is DMG's business model?

DMG operates as a vertically integrated blockchain and data center technology firm, focusing on monetizing opportunities within the blockchain ecosystem.

Where can investors find more information about DMG?

Investors can access more information about DMG and its offerings through their website at www.dmgblockchain.com or by contacting their investor relations team.

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