Blockchain Mining Ltd. Provides Update on Exchange of ADRs for Shares
MONTREAL and RAMAT GAN, Israel, July 26, 2018 (GLOBE NEWSWIRE) -- Blockchain Mining Ltd. (“BLCM” or the “Company”) (TASE: BLCM.TA) (OTCQX: BLLCF), subsequent to the Company’s press release of July 9, 2018 regarding the termination of the American Depositary Receipt (“ADR”), today provided an update regarding the exchange of ADRs for BLCM ordinary shares, providing investors with the ability to trade the underlying ordinary shares on the OTCQX® Best Market as well as the Tel-Aviv Stock Exchange.
As previously highlighted, the existing ADR facility will be terminated effective at 5:00 PM (Eastern Time) on July 26, 2018. As background, any holder of the security trading under the symbol “BITFY” is an owner of an ADR issued by The Bank of New York Mellon (the “Depositary”). Each ADR is contractually entitled to two (2) ordinary shares of BLCM held on deposit by the Depositary, and each ADR holder is entitled to take possession of the two (2) underlying ordinary shares for each ADR they own.
Under the terms of the Deposit Agreement between BLCM and the Depositary, and in accordance with the notice provided by the Depositary to each broker or custody agent, you have until at least November 26, 2018 to elect to surrender your BLCM ADRs for delivery of the underlying shares. The Depositary will deliver the ordinary shares to the broker or other custody agent of the ADR holder.
All ADR holders are encouraged to contact the institution with custody of their ADRs to arrange for the exchange to ordinary shares. Each brokerage will have its own policies and procedures; the Company cannot offer advice on the specific policies of any institution.
If you surrender ADRs for delivery of the underlying shares, you must pay a cable fee of $17.50, a cancellation fee of $0.05 per ADR surrendered as well as any other taxes or governmental charges which may be owed, based on the shareholder jurisdiction. Subsequent to November 26, 2018 under the terms of the Deposit Agreement, the Depositary may attempt to sell any unclaimed underlying shares. If an ADR holder does not instruct their custodian to surrender their ADRs for delivery of the ordinary shares, the holder will be entitled, upon subsequent surrender of their ADRs, to receive the net proceeds of any sale of the underlying shares.
“We´re pleased that we can now offer investors the convenience of trading all BLCM ordinary shares directly on the OTCQX® Best Market, in addition to the Tel-Aviv Stock Exchange,” said Wes Fulford, Chief Executive Officer. “We expect trading on the OTCQX to lead to increased U.S. ownership, facilitated by a more efficient marketplace, as well as improved liquidity in our local market and enhanced shareholder value.”
The listing of the ordinary shares on the Tel-Aviv Stock Exchange is unaffected by the trading of the ordinary shares in North America.
About Blockchain Mining Ltd.
Blockchain Mining Ltd., through its transaction with Backbone Hosting Solutions Inc. (Bitfarms), owns and operates blockchain farms that power the global decentralized financial economy. Bitfarms provides computing power to cryptocurrency networks such as bitcoin, bitcoin cash, ethereum, litecoin and dash, earning fees from each network for securing and processing transactions, 24 hours a day, seven days a week. Since 2013, predecessors to Bitfarms have constructed 4 farms in Québec, Canada, which have 27.5 MW of installed capacity and over 200 Ph/s of installed hash-power. Bitfarms’ construction pipeline includes an additional 5 farms with a total of 162.5 MW of power capacity, including current operations.
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Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The Tel Aviv Stock Exchange has neither approved nor disapproved the contents of this press release.
This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of this news release. The information in this release about future plans and objectives of the Company, are forward-looking information. Other forward-looking information includes but is not limited to information concerning: the intentions, plans and future actions of the Company, the listing of the Common Shares on stock exchanges, as well as Bitfarms’ ability to successfully mine digital currency, revenue increasing as currently anticipated, the ability to profitably liquidate current and future digital currency inventory, volatility in digital currency prices and the resulting significant negative impact on the Company’s operations, the construction and operation of expanded blockchain infrastructure as currently planned, and the regulatory environment of cryptocurrency in the Provinces of Canada.
Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information.
This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks relating to the global economic climate; dilution; the Company’s limited operating history; future capital needs and uncertainty of additional financing; the competitive nature of the industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology change; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; network security risks; the ability of the Company to maintain properly working systems; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; and volatile securities markets impacting security pricing unrelated to operating performance. In addition, particular factors which could impact future results of the business of Bitfarms include but are not limited to: the construction and operation of blockchain infrastructure may not occur as currently planned, or at all; expansion may not materialize as currently anticipated, or at all; the digital currency market; the ability to successfully mine digital currency; revenue may not increase as currently anticipated, or at all; it may not be possible to profitably liquidate the current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on operations; the volatility of digital currency prices; the anticipated growth and sustainability of hydroelectricity for the purposes of cryptocurrency mining in the Province of Québec, the ability to complete current and future financings, any regulations or laws that will prevent Bitfarms from operating its business; historical prices of digital currencies and the ability to mine digital currencies that will be consistent with historical prices; and there will be no regulation or law that will prevent Bitfarms from operating its business. The Company has also assumed that no significant events occur outside of the Bitfarms’ normal course of business. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.Source: Backbone Hosting Solutions Inc.
Released July 26, 2018