U.S. Global Investors sells 10M HIVE Blockchain shares, to reinvest in HIVE bonds

Dec. 30, 2020 5:15 PM ETU.S. Global Investors, Inc. (GROW)GROW, HIVEBy: Liz Kiesche, SA News Editor7 Comments
  • U.S. Global Investors (NASDAQ:GROW) climbs 5.6% in after-hours trading after it sold 10M shares of HIVE Blockchain Technologies (OTCQX:HVBTF), locking in gains of ~$18M.
  • The company expects to reinvest $15M of the proceeds back into HIVE through a private placement of unsecured convertible bonds, subject to regulatory approval by the TSX Venture Exchange.
  • U.S. Global Investors CEO Frank Holmes, who is also interim executive chairman of HIVE, said no shares were sold by him personally.
  • "By repositioning our investment in HIVE, we seek to continue participating in the crypto-mining ecosystem while lowering much of the volatility of our investment portfolio," Holmes said.
  • The debentures are expected to mature 60 months following the date of issuance, bearing interest at a rate of 8% per year, paid monthly.
  • U.S. Global Investors is expected to be issued 5M common share purchase warrants, with each whole warrant entitling GROW to acquire one common share in HIVE at a price of C$3.00 for a period of three years from closing.
  • Previously (Dec. 24): HIVE Blockchain launches private placement of convertible bonds

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