DMG Provides Flagship Mining Facility Update
- DMG completes construction of DMG-owned substation
- One of North America’s largest industrial mining facilities ready for energization in mid-to-late October
- DMG exercises option to purchase land and building
VANCOUVER, British Columbia, September 27, 2018 — DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF:OTC US) (FRANKFURT:6AX) (“DMG”or the“Company”), a diversified blockchain and cryptocurrency company, provides an update of its new flagship mining facility in eastern British Columbia.
DMG has completed construction of all essential components of its 85-megawatt substation. DMG began the process to commission its substation in mid-September. The commissioning is being orchestrated by DMG to meet the requirements of the regional utilities and power authorities. This process is expected to be completed mid-to-late October. As DMG’s COO, Sheldon Bennett, commented, “As soon as the commissioning process is completed, DMG is ready to energize.”
DMG is now actively in discussions with existing and prospective industrial mining customers for its Mining-as-a-Service (MaaS) offering. At this new facility, DMG can host in excess of 30,000 units of industry-standard bitcoin miners.
As DMG has constructed its own private substation, the Company believes its usage will have no material impact on the power needs of the local community. CEO Dan Reitzik commented, “DMG is tremendously excited about the completion of this new facility and is grateful that we can continue to meaningfully contribute to the local economy and to be a new source of employment in this region.”
DMG Purchases its Flagship Facility Land and Building
DMG also announces that it has exercised its option to purchase its flagship facility comprised of 34 acres of land with an existing 27,000 square foot building, located in British Columbia.
DMG also announces that its Board of Directors has approved the re-pricing of 2,726,666 stock options to purchase common shares (the “Options”), which were issued at a price of $0.80 on February 8, 2018, to an exercise price of $0.40. This new price more accurately reflects the current blockchain marketplace. All other terms remain unchanged. This re-pricing is subject to TSX Venture Exchange approval, and to disinterested shareholder approval of 600,000 of these Options which were issued to directors and officers, at the Company’s upcoming Annual General & Special Meeting being held on October 25, 2018.
About DMG Blockchain Solutions Inc.
DMG Blockchain Solutions Inc. is a diversified blockchain and cryptocurrency company that manages, operates and develops end-to-end solutions to monetize the blockchain ecosystem. DMG, with its Blockseer division located in Silicon Valley, intends to be the global leader in industrial scale crypto mine hosting – Mining as a Service (MaaS), crypto mining, blockchain forensics/analytics, and blockchain platform development.
For more information on DMG Blockchain Solutions visit: dmgblockchain.com
On behalf of the Board of Directors,
Daniel Reitzik, CEO & Director
For further information, please contact:
DMG Blockchain Solutions Inc.
Investor Relations: John Martin
Toll Free: 1-888-702-0258
Email: [email protected]
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information based on current expectations. Statements about the Company’s plans and intentions, other potential transactions, the expansion and build-out of the flagship facility, adding more megawatts of power, product development, events, acquiring new customers, courses of action, and the potential of the Company’s technology and operations, among others, are all forward-looking information. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, business, economic and capital market conditions; the ability to manage operating expenses, which may adversely affect the Company’s financial condition; the ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; access to equipment; market conditions and the demand and pricing for products; the demand and pricing of bitcoins; security threats, including a loss/theft of DMG’s bitcoins; DMG’s relationships with its customers, distributors and business partners; the inability to add more power to DMG’s facilities; DMG’s ability to successfully define, design and release new products in a timely manner that meet customers’ needs; the ability to attract, retain and motivate qualified personnel; competition in the industry; the impact of technology changes on the products and industry; failure to develop new and innovative products; the ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect the business; the ability to manage working capital; and the dependence on key personnel. DMG may not actually achieve its plans, projections, or expectations. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, the ability to successfully develop software, that there will be no regulation or law that will prevent the Company from operating its business, anticipated costs, the ability to achieve goals and the price of bitcoin. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements.
The securities of DMG are considered highly speculative due to the nature of DMG’s business.
Factors that could cause the actual results to differ materially from those in forward-looking statements include, failure to obtain regulatory approval, the continued availability of capital and financing, equipment failures, lack of supply of equipment, power and infrastructure, failure to obtain any permits required to operate the business, the impact of technology changes on the industry, competition, security threats including stolen bitcoins from DMG or its customers, consumer sentiment towards DMG’s products, services and blockchain technology generally, failure to develop new and innovative products, litigation, increase in operating costs, increase in equipment and labor costs, failure of counterparties to perform their contractual obligations, government regulations, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.