Link Global Technologies Closes Oversubscribed $1,748,000 Non-Brokered Private Placement Units Offering

Rhea-AI Summary

Link Global Technologies Inc. (CSE:LNK)(OTC PINK:LGLOF) has successfully completed an oversubscribed private placement raising $1.748 million by issuing 2,185,000 units at $0.80 each, with each unit consisting of a common share and a warrant. The funds will be used for general working capital. The company also settled $509,100 in debts via share exchanges. New board member Michael Vogel brings extensive experience in the crypto sector. Additionally, Link received 300 Bitmain S17 miners to enhance its operations, aiming to optimize earnings through a partnership with Neptune Digital Assets.

Positive

• Completed oversubscribed offering raising $1.748 million.
• Settlement of $509,100 in debt with shares enhances liquidity position.
• Appointment of Michael Vogel to the Board adds industry expertise.
• Received 300 Bitmain S17 mining machines, expected to boost operational capacity.

Negative

• None.

Release Highlights:

• Link Closes Oversubscribed $1.748 Million Units Offering
• Link Settles $509,100 in Debt-for-Shares
• Michael Vogel Joins Link Board of Directors
• Link Receives 300 Bitmain S17 Miners for Neptune Digital Assets' operations

VANCOUVER, BC / ACCESSWIRE / May 12, 2021 / LINK GLOBAL TECHNOLOGIES INC. (CSE:LNK)(FRA:LGT)(OTC PINK:LGLOF) ("LINK" or the "Company"), an innovative power and infrastructure solutions provider for Bitcoin mining, and data hosting operations, is pleased to announce the closing of a private placement of units (the "Private Placement" or "Offering"), previously announced on April 19, 2021.

The Company issued 2,185,000 units (each, a "Unit") at a price of $0.80 per Unit for gross proceeds of $1,748,000. Each Unit consists of one common share (each, a "Share") and one common share purchase warrant (each, a "Warrant"), with each Warrant entitling the holder to acquire one additional share at a price of $1.25 for a period of 24 months following the closing of the Offering. The Company intends to use the proceeds from the Offering for general working capital purposes.

The Company paid finders' fees of $65,400 and issued 81,477 finders' warrants, each of which entitles the holder to purchase one share at a price of $1.25 for 24 months from the date of closing of the Offering.

Stephen Jenkins, Chief Executive Officer and Director of the Company, purchased 125,000 Units under the Offering, and Michael Vogel, a Director of the Company, indirectly purchased 18,750 Units under the Offering, each of which constituted a "related party transaction" within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The issuance to the insiders is exempt from the formal valuation and the minority shareholder approval requirements of MI 61-101 as the fair market value of the Units issued to or the consideration paid by such persons did not exceed 25 percent of the Company's market capitalization.

The Company also announces that it has agreed with certain counterparties to settle accrued accounts payables for Shares or Units of the Company (the "Debt Settlement"). The Company settled the following amounts:

• Settled $140,000 accounts payable in exchange for the issuance of 175,000 Units at a deemed price of $0.80 per Unit. The Units issued under the Debt Settlement have the same terms as the Units issued under the Offering.
• Settled $233,200 accounts payable in exchange for the issuance of 291,500 Shares of the Company at a deemed price of $0.80 per share.
• Settled $139,500 accounts payable on April 21, 2021, in exchange for the issuance of 155,000 Shares of the Company at a deemed price of $0.90 per share.

None of the securities sold in connection with the Offering, the Debt Settlement, the grant and the DSU awards will be registered under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

All securities issued in the Offering and Debt Settlement are subject to a four-month hold period expiring September 13, 2021. All securities issued in connection with the Debt Settlement on April 21, 2021 are subject to a four-month hold period expiring August 22, 2021.

Changes to Board of Directors

The Company is pleased to announce that Mr. Michael Vogel has joined the Company as a member of the Board of Directors. Mr. Vogel was most recently acting as Advisor to the Board.

Mr. Bijan Alizadeh has resigned as a director of the Company.

Mr. Vogel is the original founder of Netcoins Inc. (sold to BIGG Digital Assets Inc.) and currently Chief Executive Officer of Coinstream, a bitcoin company aimed at the U.S. market, offering a streamlined way for Americans to buy cryptocurrencies. Mr. Vogel is also founder and CEO of Encore Ventures, which is involved in the development and incubation/advisory of new start-ups and technologies in both crypto and tech spaces.

Mr. Vogel's specialty is fast-growing start-ups in disruptive sectors -- taking new ideas and products from concept to market to scale, something he has done multiple times in building several multi-million-dollar start-ups. Mr. Vogel brings a wealth of experience and knowledge across Board, public markets, executive and engineering levels. Mr. Vogel is regularly interviewed in both Canadian and international media as a thought leader in the crypto industry.

Stephen Jenkins, Link's Chief Executive Officer and Director, states: "I'd like to welcome Michael Vogel to our Board. I have known Michael for many years and have witnessed his success at both building and exiting Netcoins Inc. Michael is a successful entrepreneur and has built a strong reputation within the crypto community. We at LINK look forward to working with Michael as we expand Link's operations and services. We would also like to express our sincere appreciation and gratitude to Bijan as he steps down as a Director of Link. Bijan and Block One Technology have been instrumental during our initial start-up phase and enabled Link to fully commission our first two facilities with their miners. Link has since evolved into multi-locations with approximately 20 megawatts in operations and several new locations to be added online in the coming months. We would like to wish Bijan the very best."

Jenkins goes on to say, "This is an important time for LINK, and with COVID issues being more persistent and slowing down international development, it allows us to focus on local expansion and our energy efficiency and clean energy initiatives as previously announced. The Company will be announcing updates on these very quickly."

Business Update

As previously announced on March 4, 2021, the Company has received 300 Bitmain S17 mining machines on behalf of Neptune Digital Asset Corp. ("Neptune") and is currently being installed at the Company's hosting facilities in Alberta. The Company's contract with Neptune is a Power and Royalty Share Agreement, therefore maximizing both parties' net earnings output opportunities. When fully operational, these Bitmain SHA 256 Algorithm machines generate over 15 PetaHash (P.H.). The Company will provide further updates to the machine economics in the coming weeks as additional machines arrive and are commissioned for operations.

Stock Options and Deferred Share Units (DSUs)

The Company is also pleased to announce that it has granted (the "Grant") an aggregate of 400,000 stock options to purchase up to 400,000 Shares to Michael Vogel, in connection with the appointment to the Board of Directors, and to Dominic Vogel, a Special Advisor to the Board. These stock options will vest immediately and are exercisable for a period of five years from the date of grant at a price of $0.78 per share. The options and the Shares issuable upon the exercise of the Options held by the optionees are subject to a hold period of four months from the date of grant of the stock options.

The Company also announces that it has granted 1,900,000 DSUs under its Long Term Incentive Policy Plan ("LTIPs) to certain directors. These DSUs were priced based on the April 16, 2021 closing price of the Company's common shares on the Canadian Securities Exchange.

About Link Global Technologies Inc.

Link is engaged in providing infrastructure and operating expertise for digital mining and data hosting operations. Link's objectives include locating and securing, for lease and option to purchase, properties with access to low-cost, reliable power, and deploying this low-cost power to conduct digital mining and supply clean energy and infrastructure for other data-hosting services.

On behalf of Link Global Technologies Inc.

Stephen Jenkins
Chief Executive Officer & Director

For more information, visit http://linkglobal.io/ or contact:

Steve Jenkins
stephen@linkglobal.io
+1-877-770-6545

For investor information, please contact:

Omar Diaz
Investor Relations Manager
omar@linkglobal.io
604-551-2950

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION. This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements consist of statements that are not purely historical and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "forecast", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes", or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "would", "could", "should" or "might" occur. Forward-looking statements made in this news release relate to: the intended use of the net proceeds from the Offering; the agreement and business relationship with Neptune, including the operating metrics when fully operational and that the Company will be providing further updates in the coming weeks, and other matters relating to the Company's business plans. All such forward-looking statements are based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions based on historical trends, current conditions and expected future developments. Since forward-looking statements relate to future events and conditions, by their very nature, they require making assumptions and involve inherent risks and uncertainties. The Company cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. In the case of the Company, these risks, uncertainties, assumptions and other factors include, without limitation: that actual use of proceeds of the Offering may differ materially from those set out in this news release; those set out in the Company's most recent MD&A, fluctuations in the price of electricity, fluctuations in the price of digital currencies/Bitcoin, the future potential halving of Bitcoin, increases in the network difficulty rate and price of digital currencies/Bitcoin, negative changes in the level of digital currency/Bitcoin rewards per block, the securing of economic rates for the purchase of power, the opportunities for acquiring digital currency mining hardware, unanticipated changes in laws, regulations or other industry standards affecting the business of the Company, reliance on key management personnel, the Company's ability to implement its business plan, litigation risk, stock price volatility, the effects of general economic and other factors beyond the control of the Company, and other matters that may occur in the future. Given these risks, undue reliance should not be placed on these forward-looking statements, which apply only as of the date hereof. Other than as specifically required by law, the Company undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise.

SOURCE: Link Global Technologies Inc.

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FAQ

What amount did Link Global Technologies raise in their recent offering?

Link Global Technologies raised $1.748 million in their recent private placement offering.

Who joined Link Global Technologies' Board of Directors?

Michael Vogel has joined the Board of Directors of Link Global Technologies.

What is the stock symbol for Link Global Technologies?

The stock symbol for Link Global Technologies is LGLOF.

How many Bitmain S17 miners did Link Global Technologies receive?

Link Global Technologies received 300 Bitmain S17 miners for their operations.

What will Link Global Technologies use the proceeds from the offering for?

Link Global Technologies intends to use the proceeds from the offering for general working capital purposes.