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TORONTO, Jan. 06, 2021 (GLOBE NEWSWIRE) — Blockchain Foundry Inc. (“BCF” or the “Company”) (CSE:BCFN), a leading North American blockchain development firm, is pleased to announce that it has closed a non-brokered private placement (the “Private Placement”) of units (the “Units”) with a group of strategic investors. The Company issued 3,555,556 Units at a price of $0.225 per Unit for gross proceeds of $800,000. Each Unit is comprised of one common share (each a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share (each, a “Warrant Share”) at a price of $0.30 per Warrant Share for a period of 24 months following the closing of the Private Placement. In connection with the Private Placement, the Company will pay a finder’s fee equal to 7% of the gross proceeds of the Private Placement.
As at September 30, 2020, the Company had a cash position of $41,017. The Company subsequently completed private placements on October 6, 2020, November 10, 2020 and November 30, 2020 for aggregate gross proceeds of $450,000. Combined with the current Private Placement, the Company has substantially strengthened its balance sheet and improved its financial flexibility. The proceeds from the Private Placement will be used to accelerate the Company’s product strategy and hire development personnel.
To date, all of the Company’s revenue has been from consulting services and custom blockchain development projects. Through the execution of these projects, the Company has developed substantial expertise and IP in blockchain infrastructure, digital token infrastructure and bridging technology to move between independent blockchain ecosystems. The Company intends to leverage this expertise into the development of software products that will add recurring revenue and diversify the Company’s revenue stream. The Company has recently added product management personnel to focus on refining its product roadmap and go to market strategy. In addition, the Company has been engaging with potential industry partners who would be the initial users of any products developed by the Company. Focus areas for the Company’s product strategy are in the areas of blockchain infrastructure, remittances, loyalty applications and digital identities.
As disclosed in the Company’s Management Discussion & Analysis for the three and nine months ended September 30, 2020, the Company continues to increase its client base and currently has five active clients; three in larger project phases and two in discovery/scope of work phases. These projects are in different stages of development and the Company will provide updates as significant milestones are reached or the projects progress to more advanced stages of development. These projects are in areas including digital token infrastructure, blockchain infrastructure and bridging technology, and GDPR compliance/data protection.
In addition to its active projects, the Company is also in various stages of discussion with five additional potential clients with an average project value of approximately $250,000. The Company’s consulting pipeline remains robust and management expects the consulting business to show stable growth over the next 12-18 months.
About Blockchain Foundry Inc.
Blockchain Foundry develops and commercializes blockchain-based business solutions and provides consulting services to corporate clients seeking to incorporate blockchain technology into their businesses.
Blockchain Foundry Contact Information:
Certain portions of this press release contain “forward-looking information” within the meaning of applicable Canadian securities legislation, which is also referred to as “forward-looking statements”, which may not be based on historical fact, including, but not limited to, BCF completing any drawdowns on the equity facility and the terms of each drawdown. Wherever possible, words such as “will”, “plans,” “expects,” “targets,” “continues”, “estimates,” “scheduled,” “anticipates,” “believes,” “intends,” “may,” “could,” “would” or might, and the negative of such expressions or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved, have been used to identify forward-looking information.
Forward-looking statements should not be read as guarantees of future events, future performance or results, and will not necessarily be accurate indicators of the times at, or by which, such events, performance or results will be achieved, if achieved at all. Readers should not place undue reliance on such forward-looking statements, as they reflect management’s current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by BCF are inherently subject to significant business, economic, regulatory, competitive, political and social uncertainties, and contingencies, including, but not limited to, the ability of BCF to complete any drawdowns on the terms described herein or at all. Many factors could cause BCF’s actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities law and may not be offered or sold in the “United States”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.