Cobalt Blockchain Inc. (“COBC” or the “Company”) (TSX-V: COBC; OTCQB: COBCF) announces that it is working towards completing the previously announced private placement offering (the “Offering”) through the issuance of units (“Units”) at a price of $0.05 per Unit raising gross proceeds of $1,000,000, subject only to final approval of the TSX Venture Exchange. The placement is unbrokered.

Each Unit to be issued pursuant to the Offering will consist of one common share in the capital of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to purchase one additional Common Share at a price of $0.20 for a period of two years from the date of its issuance.

The Company intends to use the net proceeds of the Offering to fund i) commissioning of the hydroxide plant in Democratic Republic of Congo and ii) for working capital and general corporate purposes.

The securities to be issued in connection with the Offering are subject to a statutory four-month hold period from the date of issuance i.e. the hold periods expire four months and one day from their respective dates of issuance.

Advertisement

The Company is also pleased to announce that it is now proceeding with an additional private placement offering (the “New Offering”) through the issuance of an additional 50,000,000 Units at a price of $0.05 per Unit for a gross proceeds of up to $2,500,000.

Each Unit to be issued pursuant to the New Offering consists of one Common Share and one Common Share purchase warrant. Each Warrant will entitle the holder thereof to purchase one additional Common Share at a price of $0.20 for a period of two years from the date of its issuance. The New Offering will be brokered.

The Company intends to use the net proceeds of the New Offering to fund i) exploration work on its joint venture properties, ii) commission of the hydroxide plant in Democratic Republic of Congo and securing adequate feed material for the plant, and iii) for working capital and general corporate purposes.

The securities to be issued in connection with the New Offering are subject to a statutory four-month hold period for the respective dates of issuance i.e. the hold periods expire four months and one day from their respective dates of issuance.

This press release does not constitute an offer to sell or solicitation of an offer to sell any of the securities. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws.

Advertisement

SOURCE Cobalt Blockchain Inc.