Africa Hydrocarbons completes change of business transaction and changes name to BlockchainK2 Corp
29-05-2018 10:35:00 | by: Bob Koigi | hits: 1160 | Tags:

BlockchainK2 Corp., formerly Africa Hydrocarbons Inc. has completed its previously announced “Change of Business” transaction. As part of the COB Transaction, the Company changed its name from Africa Hydrocarbons Inc. to BlockchainK2 Corp.

The Company intends to meet the listing requirements for a “Tier 2” technology issuer on the TSX Venture Exchange and will be a blockchain technology company, with its initial business being cryptocurrency mining.

In connection with the closing of the COB Transaction, the Company changed its name from “Africa Hydrocarbons Inc.” to “BlockchainK2 Corp.” and changed its stock symbol to “BITK”.

Trading in the common shares of the Company is expected to begin on the TSX Venture Exchange under the Company’s new stock symbol “BITK” on May 30, 2018.
The Company is completing the Change of Business by acquiring cryptocurrency mining rigs and other equipment necessary to commence cryptocurrency mining operations.

The Company is in the process of making an initial order for Bitcoin mining rigs. The remaining cryptocurrency mining rigs will be ordered as soon as possible thereafter, subject to the Company sourcing the most up to date equipment and at the most favorable prices. Delivery of such equipment is expected to occur within two months of payment therefore.

The Company also intends to negotiate and execute the agreements necessary to commence cryptocurrency mining operations, such operations to be hosted and managed at a third-party data center located in Edmonton, Alberta.

The commencement of cryptocurrency mining operations will be the Company’s first step towards its goal of building a blockchain company, first through the development and ownership of cryptocurrency infrastructure and thereafter through investments in other blockchain businesses or technologies.

Following closing of the COB Transaction, the Company’s outstanding subscription receipts issued upon closing of the Company’s concurrent non-brokered and brokered private placement financings, as described in the Company’s news releases dated January 19, 2018 and April 4, 2018, automatically converted into an aggregate of 3,335,334 common shares in the capital of the Company and 1,667,667 common share purchase warrants.

Each Warrant entitles the holder to purchase one (1) common share of the Company at an exercise price of CAD$2.00 per common share for 12 months from the date of issuance. The Warrants will contain an acceleration right in favor of the Company that will allow the Company to accelerate the Time of Expiry to a date that is a minimum of thirty (30) days following the delivery of the applicable acceleration notice to the holders of the Warrants, if at any time following the issuance of the Warrants, the VWAP is equal to or greater than CAD$2.50 for a period of twenty (20) consecutive trading days on the Exchange.

Aggregate proceeds of CAD$4,169,167.50, which had been held in escrow in accordance with the terms of the Subscription Receipts, have been released to the Company.

Following the completion of the COB Transaction, the Company has an aggregate of 15,901,625 common shares outstanding.
The Board of Directors of the Company remains as follows: Douglas Wu, Sergei Stetsenko and Andri Stytsenko. Mr. Wu remains Chief Executive Officer of the Company. Mr. Anthony Jackson remains as Chief Financial Officer and Corporate Secretary.

Biographies of board members and management of the Company are available in the Filing Statement of the Company dated May 22, 2018.

In accordance with the policies of the Exchange, an aggregate of up to 1,658,750 common shares in the capital of the Company owned or controlled by Mr. Stetsenko and Mr. Wu will be held in escrow pursuant to an escrow agreement, with Computershare Investor Services Inc., acting as escrow agent.

The Escrowed Shares will be released from escrow as follows: 10% upon issuance of the Exchange bulletin granting final approval for the Transaction; 15% on the date that is six months after the date of the Final Bulletin; 15% on the date that is 12 months after the date of the Final Bulletin; 15% on the date that is 18 months after the date of the Final Bulletin; 15% on the date that is 24 months after the date of the Final Bulletin; 15% on the date that is 30 months after the date of the Final Bulletin; and 15% on the date that is 36 months after the date of the Final Bulletin.

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