Dynamite Blockchain Announces Private Placement

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The Company Seeks to Raise Capital to Develop its Kaspa Focused Strategy

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NOT FOR DISTRIBUTION TO U.S. NEWSWIRES OR DISSEMINATION IN THE UNITED STATES

Vancouver, B.C., Feb. 07, 2025 (GLOBE NEWSWIRE) — Dynamite Blockchain Corp. (the “Company” or “Dynamite”) (CSE: KAS) is pleased to announce a non-brokered private placement (the “Offering”) of up to 10,000,000 units of the Company (each, a “Unit”) at a price of $0.10 per Unit, for aggregate gross proceeds of up to $1,000,000. Each Unit will consist of one (1) common share in the capital of the Company (a “Common Share”) and one (1) transferable share purchase warrant (a “Warrant”), each warrant to entitle the holder to purchase one (1) additional Common Share at an exercise price of C$0.20 per Common Share for a period of 24 months following the closing of the Offering, subject to acceleration in the event the Common Shares close above $0.30 for a period of five (5) consecutive trading days.

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The Offering will be completed pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 Prospectus Exemptions and therefore the Common Shares underlying the Units issued in the Offering to Canadian subscribers will not be subject to a hold period in accordance with applicable Canadian securities laws. The Warrants underlying the Units issued in the Offering and any Shares issued upon exercise thereof will be subject to contractual restrictions on resale, expiring four-months and one day from the date of issue of the Warrants. There is an offering document related to the Offering (the “Offering Document”) that can be accessed under the Company’s profile at www.sedarplus.ca and at www.dynamiteblock.com. Prospective investors should read the Offering Document before making an investment decision.

The Offering is expected to close on about February 20, 2025, and completion of the Offering is subject to certain conditions including, but not limited to, receiving adequate subscriptions for the Offering and the receipt of all necessary approvals, including the approval of the Canadian Securities Exchange.

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Use of Funds

The Company intends to use the net proceeds from the Offering to solidify the Company’s position as a Kaspa-focused public company, by using proceeds towards the purchase of Kaspa coins and further investment into Kaspa mining operations and Kaspa product development. Other uses of the proceeds will be used towards audit fees, legal fees, marketing fees, consulting fees and general working capital, as further set out in the Offering Document.

“By focusing the majority of the proceeds on Kaspa Purchases, Mining Operations and Kaspa Product development, we are strategically positioning ourselves to be on the path to become the ‘Kaspa Proxy’ by providing shareholders exposure to Kaspa on the Canadian Securities Exchange,” commented Akshay Sood, CEO of Dynamite Blockchain Corp.

Why
Kaspa
and
Why Now?

The Company believes that Kaspa is currently critically undervalued, due to the following expected developments:

1.Speed: Kaspa’s Crescendo hardfork (the “Hardfork”) is now expected in only a couple monthsⁱ , an event that the Company expects to allow the Kaspa network to go through a transformational upgrade and enable it to process 10 times as many blocks as it is currently processing todayⁱⁱ;

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2.Functionality: The Hardfork update is expected to come just prior to the implementation of smart contract functionalityⁱⁱⁱ, which the Company expects will take Kaspa’s Layer 1 network to new heights;

3.Scalability: With the two developments above in place, it is expected that Kaspa will not only be faster than Ethereum, Bitcoin and Solana^iv, but also more scalable; and

4.Security: Having higher transaction throughput than compared to its current state^v, the Company expects Kaspa will take a further step towards building an extremely secure and decentralized framework that addresses the blockchain trilemma beautifully^vi.

“With
the
upcoming
Crescendo
Hardfork,
we
believe
that
Kaspa’s
value
proposition
and
utility will
strengthen
and
that
we
will
be
poised
to
capitalize
on
this
transformation,” continued Mr. Sood.

“We are not just focused on mining or holding Kaspa but on creating a comprehensive ecosystem that fosters diversification, long-term sustainability and adoption,” concluded Mr. Sood.

The securities issued pursuant to the Offering have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United
States
or
to,
or
for
the
account
or
benefit
of,
U.S.
persons
in
the
absence
of
U.S.
registration or an applicable exemption from the U.S. 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 the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.

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On behalf of the Company,

Akshay Sood,
Chief Executive Officer
Telephone: 236-259-0279

About
Dynamite
Blockchain Corp.

Dynamite Blockchain is a blockchain technology infrastructure company focused on building a diversified blockchain ecosystem focused on Kaspa.

Forward-Looking Statements

The information in this news release includes certain information and statements about management’s view of future events, expectations, plans, and prospects that constitute forward- looking statements. These statements are based upon assumptions that are subject to risks and uncertainties. Forward-looking statements in this news release include, without limitation, statements respecting: the Offering, the timing thereof and the expected use of proceeds therefrom; the Company’s focus on Kaspa; the Company’s belief that Kaspa is critically undervalued; expectations respecting the Kaspa Crescendo Hardfork and the impact thereof; implementation of smart contract functionality into Kaspa and the impact thereof; the Company’s goal to become a Kaspa Proxy; Kaspa’s value proposition strengthening and the Company being poised to capitalize on that transformation; and the Company’s focus on creating a comprehensive ecosystem for Kaspa that fosters diversification, long-term sustainability and adoption. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward- looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements, or otherwise.

The CSE (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.

ⁱ
https://medium.com/@coderofstuff/crescendo-consolidated-roadmap-update-4c96535f7a43

ⁱⁱ https://kaspa.org/crescendo-hard-fork-roadmap-10bps/

ⁱⁱⁱ https://kaspa.org/developments/

^iv https://kaspaspeed.com/

^v
https://www.bitget.com/news/detail/12560604474352

^vi https://kaspa.org/about-kaspa/

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