Fortress Blockchain Corp. Announces Closing of $15 Million Private Placement

VANCOUVER, British Columbia, Jan. 10, 2018 (GLOBE NEWSWIRE) -- Fortress Blockchain Corp. (the "Corporation" or “Fortress Blockchain”) is pleased to announce that the Corporation has closed a brokered private placement financing of 30,000,000 common shares in the capital of the Corporation at a price of $0.50 per share, for aggregate gross proceeds of $15,000,000 (the "Offering"). Desjardins Capital Markets acted as lead agent and sole book runner on behalf of a syndicate of agents, including Haywood Securities Inc.

Aydin Kilic, President, Chief Executive Officer and a Director of the Corporation, stated “We are very pleased to close this brokered financing and add many of Canada’s leading institutional investors to our shareholder registry. Upon completion of our strategic acquisition of a green-energy mining facility with a proven track record of profitable Bitcoin mining, access to one of the lowest power costs in North America, and a seasoned Board of Directors and Special Advisors, Fortress Blockchain will be poised to capitalize on the increasing adoption of Bitcoin as the next financial asset class. We are all excited about entering our next growth phase.”

The Corporation intends to use the net proceeds from the Offering to fund: (i) the Corporation’s acquisition (the “Acquisition”) of a 5MW class "A" industrial facility purpose-built and wholly dedicated to crypto-currency mining, currently operating at 2MW capacity (the “Mining Facility”) located in the Pacific Northwest; (ii) capital expenditures related to the acquisition of ASIC mining equipment and the build out of the Mining Facility from 2MW to 5MW following the completion of the Acquisition; (iii) the payment of a deposit for the acquisition of a new 9MW facility to be specifically designed and constructed as a wholly dedicated crypto-currency mining facility; and (iv) general corporate purposes. 

The Corporation anticipates the acquisition of the Mining Facility to close on or before February 16, 2018.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States or to a U.S. person (a "U.S. Person") (as such term is defined in Regulation S promulgated under the United States Securities Act of 1933, as amended (the "U.S. Securities Act")). The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Fortress Blockchain

Fortress Blockchain Corp. is a technology-oriented blockchain mining company committed to operating in low cost North American green-energy regions. Fortress Blockchain’s resources are currently dedicated to achieving peak operational efficiency in industrial scale Bitcoin mining, to ultimately deliver an industry leading competitive advantage in performance. Fortress Blockchain is strategically acquiring state-of-the-art mining facilities, including a seminal Washington state facility which has been in continuous operation since 2014, which will also serve as an R&D facility going forward to optimize and build out the next generation of highly scalable blockchain mining infrastructure.

For further information, please contact:

Fortress Blockchain Corp.
Attention: Investor Relations

Disclaimer for Forward-Looking Statements

All statements, other than statements of historical fact, included herein are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "likely" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements in this news release include statements regarding the expected use of proceeds from the Offering and the timing of the closing of the acquisition of the Mining Facility. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements, including, without limitation, adverse market conditions, risks and uncertainties related to the acquisition of the Mining Facility not being completed, the inherent risks involved in the cryptocurrency and general securities markets, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, currency fluctuations, competition, loss of key employees and other related risks and uncertainties. The Corporation does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements.