iMining Completes Acquisition of CanETH

March 22, 2021

iMining Blockchain and Cryptocurrency Inc. (TSXV: IMIN) (the “Company” or “iMining“) is pleased to announce that the TSX Venture Exchange (“TSXV) has confirmed the Company has met the required filing requirements for the proposed acquisition of CanETH Staking Services Inc. (“CanETH“), (the “Acquisition“). The Company has now closed the Acquisition and the accompanying private placement of $2.155 million (the “Financing“).

Effective on March 22, 2021 (“Closing”), the Company issued 28,000,000 common shares in the capital of the Company (“Shares“) to the shareholders of CanETH, in exchange for acquiring all of the outstanding shares of CanETH, such that CanETH became a wholly owned subsidiary of iMining. No new control block was created as a result of the Acquisition. Shareholders of CanETH that held a minimum of 5% of the outstanding CanETH shares prior to the Acquisition, along with certain directors of the Company, have entered into voluntary lock-up agreements pursuant to which they will not sell, transfer or pledge 50% of their Shares prior to July 5, 2021, which affects approximately 8,870,000 Shares.

On Closing, the Company’s previously issued 17,240,000 subscription receipts (“Receipts“), which grossed the Company $2,155,000, automatically converted into an equivalent number of units (the “Units”) each Unit comprised of one common share (a “Share”) and one-half of one common share purchase warrant (a “Warrant”), with each whole Warrant entitling the holder to purchase one Share at $0.245 for a period of two years following the closing date, provided that, if after four months and one day, the closing price of iMining’s Shares is equal to or greater than $0.45 per Share for 20 consecutive trading days, the Company may, by notice to the Warrant holders (which notice may be by way of general news release), reduce the remaining exercise period of the Warrants to not less than 30 days following the date of such notice. All securities issued in connection with the Receipts are subject to a hold period, expiring on July 5, 2021.

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