Limited recourse equipment financing update
August 11 2023 - 5:56AM
Iris Energy Limited (NASDAQ: IREN) (“Iris Energy” or “the
Company”), a leading owner and operator of institutional-grade,
highly efficient Bitcoin mining data centers powered by 100%
renewable energy, today provided an update to the legal proceedings
related to its limited recourse equipment financing arrangements.
As previously disclosed by the Company, a
hearing was held in June 2023 in The Supreme Court of British
Columbia (the “Court”) in relation to limited recourse equipment
financing facilities entered into by two wholly owned special
purpose vehicle borrowers (the “Non-Recourse SPVs”).
Today the Court issued its ruling affirming the
Company’s position that, among other things, the Bitcoin mined by
the Company is not collateral securing such facilities and there is
no parent guarantee with respect to the equipment financing
facilities, and no relief in respect of substantive
consolidation was granted.
However, the Court declared transactions
pursuant to hashpower services provided by the Non-Recourse SPVs to
the Company to be void (the Court noted that based on the
submissions to date, the discrepancy between the value that the
Company received for the hashpower and the consideration paid to
the Non-Recourse SPVs is between $3 million and $11.9 million1).
The Company is considering whether to appeal this declaration as it
disagrees with this decision including certain factual
findings.
A full copy of the decision is available from
the Court’s registry. Legal proceedings are subject to many
uncertainties and the Company can provide no assurances as to
outcomes.
About Iris Energy
Iris Energy is a sustainable Bitcoin mining
company that supports the decarbonization of energy markets and the
global Bitcoin network.
- 100% renewables:
Iris Energy targets markets with low-cost, under-utilized renewable
energy, and where the Company can support local communities
- Long-term security
over infrastructure, land and power supply: Iris Energy builds,
owns and operates its electrical infrastructure and proprietary
data centers, providing long-term security and operational control
over its assets
- Seasoned management
team: Iris Energy’s team has an impressive track record of success
across energy, infrastructure, renewables, finance, digital assets
and data centers with cumulative experience in delivering >$25bn
in energy and infrastructure projects globally
Forward-Looking Statements
This investor update includes “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements generally relate to
future events or Iris Energy’s future financial or operating
performance. For example, forward-looking statements include but
are not limited to potential exposure with respect to the legal
proceedings relating to the Company’s limited recourse equipment
financing. In some cases, you can identify forward-looking
statements by terminology such as “anticipate,” “believe,” “may,”
“can,” “should,” “could,” “might,” “plan,” “possible,” “project,”
“strive,” “budget,” “forecast,” “expect,” “intend,” “target”,
“will,” “estimate,” “predict,” “potential,” “continue,” “scheduled”
or the negatives of these terms or variations of them or similar
terminology, but the absence of these words does not mean that
statement is not forward-looking. Such forward-looking statements
are subject to risks, uncertainties, and other factors which could
cause actual results to differ materially from those expressed or
implied by such forward looking statements. In addition, any
statements or information that refer to expectations, beliefs,
plans, projections, objectives, performance or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking.
These forward-looking statements are based on
management’s current expectations and beliefs. These statements are
neither promises nor guarantees, but involve known and unknown
risks, uncertainties and other important factors that may cause
Iris Energy’s actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements, including, but not limited to: the outcome of the legal
proceedings relating to the Company’s limited recourse equipment
financing, including the amount of any potential damages,
settlement payments or liability that may be incurred by the
Company, any of which could be higher than anticipated; the risk
that such proceedings result in significant legal and other costs
and damage to the Company’s reputation, and distract management’s
attention; and other important factors discussed under the caption
“Risk Factors” in Iris Energy’s annual report on Form 20-F filed
with the SEC on September 13, 2022, and the Company’s report on
Form 6-K filed with the SEC on February 15, 2023, as such factors
may be updated from time to time in its other filings with the SEC,
accessible on the SEC’s website at www.sec.gov and the Investor
Relations section of Iris Energy’s website at
https://investors.irisenergy.co.
These and other important factors could cause
actual results to differ materially from those indicated by the
forward-looking statements made in this investor update. Any
forward-looking statement that Iris Energy makes in this investor
update speaks only as of the date of such statement. Except as
required by law, Iris Energy disclaims any obligation to update or
revise, or to publicly announce any update or revision to, any of
the forward-looking statements, whether as a result of new
information, future events or otherwise.
Contacts
Investors |
Media |
Lincoln Tan |
Jon Snowball |
Iris Energy |
Domestique |
+61 407 423 395 |
+61 477 946 068 |
lincoln.tan@irisenergy.co |
|
To keep updated on Iris Energy’s news releases
and SEC filings, please subscribe to email alerts at
https://investors.irisenergy.co/ir-resources/email-alerts.
___________________________1 Between CAD $4 million and CAD $16
million.
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