HashChain Technology Enters into Definitive Share Purchase Agreements to Acquire 5,000 Rigs
HashChain Technology Inc. (TSXV:KASH, OTCQB:HSSHF) is pleased to announce it has entered into definitive share purchase agreements to complete the previously disclosed acquisition of 5,000 new Antminer S9 Rigs (“Rigs”) through the acquisition (the “Acquisition”) of two crypto currency mining companies (“Targets”). HashChain will acquire all of the issued and outstanding shares of the Targets for an aggregate of 55 million HashChain shares at a deemed price of $0.35 per share (the “HashChain Shares”) for a total aggregate consideration of $19.25 million. The Acquisition continues the Company’s large-scale growth of mining operations from 100 Rigs to 9,495 Rigs since listing on the TSXV on December 15, 2017.
Purchase Price Allocation
- – 5,000 Rigs at $1,500 CDN per Rig equals $7,500,000;
– 7.5 Megawatts (“MW”) installed for $700,000 per MW equals $5,250,000;
– 5 year commitment from existing Target management at $300,000 per year equals $1,500,000;
– 15 MW facility commitment for 4 years equals $2,000,000; and
– Goodwill equals $3,000,000
Terms of the Agreement
- – 22,000,000 HashChain Shares issued on the closing date of the Acquisition (the “Closing Date”);
– 11,250,000 HashChain Shares issued on the date the 5,000 Rigs are installed in a facility located in Buffalo, New York;
– 5,250,000 HashChain Shares 90 days from the Closing Date; and
– 16,500,000 HashChain Shares 120 days from the Closing Date
“Despite being founded only 6 months ago, HashChain has committed to long-term growth by acquiring the 5,000 mining Rigs to cap an impressive timeline of milestones for our young company and deliver on our promises to shareholders,” says Patrick Gray, CEO of HashChain. “Moving forward, we plan to build upon this incredible momentum with our mining operations and anticipate high ROI with minimal downtime.”
HashChain currently deploys 3,495 Rigs for approximately 4.6 MW of computing power, with an additional 1,000 Rigs awaiting installation. The 5,000 Rigs secured from this agreement provides HashChain with a total of 9,495 Rigs, which will bring total operations to 15 MW of power. To ensure geographic diversity and create redundancy in the Company’s mining operations, HashChain has opened a new Buffalo, NY data center that currently operates 2,395 of their Rigs and is expected to receive the 5,000 Rigs from the Acquisition.
Further to the previously disclosed acquisition of NodeMonitor.IO on May 22, 2018, the Company will issue such number of shares with an aggregate value of US$10,000 to the vendor of NodeMonitor.IO periodically over a period of one year from the date of the purchase agreement.
The Company has granted a total of 1.09 million stock options to certain employees and consultants of the Company pursuant to the Company’s stock option plan. The options are exercisable for a period of five years at a price of 30 cents per share and will vest immediately upon issuance.
About HashChain Technology Inc.
HashChain is a blockchain company, and the first publicly traded (TSXV: KASH; OTCQB: HSSHF) Canadian cryptocurrency mining company to file a final prospectus supporting highly scalable and flexible mining operations across all major cryptocurrencies. HashChain taps low-cost North American power, cool climate and high-speed Internet: the trifecta most critical to mining success, to create a competitive position for maximizing the number of mining ‘wins.’ HashChain currently operates 100 DASH mining Rigs and 3,395 Bitcoin Rigs with an additional 6,000 to be deployed upon successful completion of its recently announced acquisitions. Once all Rigs are operational HashChain will be consuming approximately 12.5 megawatts of power. HashChain also acquired two Dash Masternodes, which requires a collateral investment of 1,000 DASH coins for each Masternode. Diversifying its business strategy beyond crypto mining, the Company recently acquired NODE40, a blockchain technology company that developed NODE40 Balance, a new SaaS product making cryptocurrency tax reporting simpler and more accurate. The solution allows cryptocurrency users and traders to accurately report their capital gains and losses. NODE40 is also one of the leading masternode server-hosting providers for the Dash network and is seeking additional alternate coin masternode hosting.
HashChain Mining is a wholly owned subsidiary of HashChain Technology Inc. based out of Albany, New York, and an office in Vancouver, British Columbia.
On Behalf of the Board,
CEO & Director
For Further information please contact:
HashChain Technology Inc.
Vice President, Marketing & Communications
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward Looking Statements: Certain disclosure in this release, including statements regarding the anticipated benefits to the Company of the anticipated performance of a total of 9,495 Rigs, the expected timing of delivery, the successful completion of the Acquisition and installation of 5,000 rigs by the end of 2018, and expectations regarding future operations may constitute forward-looking statements. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company’s current beliefs as well as assumptions made by and information currently available to the Company, the 9,495 Rigs will perform as expected by management, the Company will successfully complete the Acquisition, the 5,000 Rigs will be successfully delivered and deployed and the timing of delivery of the 5,000 Rigs will be consistent with management’s expectations. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements; the risk that the 9,495 Rigs will not perform as expected by management, the risk that the Company will not complete the Acquisition and the risk that the 5,000 Rigs will not be successfully delivered and deployed. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
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