TSXV: CSTR
TORONTO, Feb. 17, 2021 /CNW/ - CryptoStar Corp.
(TSXV: CSTR) ("CryptoStar" or the "Company"), a
cryptocurrency mining and data centre operator, today announced
that it intends to conduct a non-brokered private placement (the
"Offering") of up to 20,000,000 units ("Units") of
the Company to raise up to $2,000,000
at a price of $0.10 per Unit.
Each Unit shall consist of one common share of CryptoStar (a
"Common Share") and one common share purchase warrant of
CryptoStar (a "Warrant"). Each Warrant shall entitle the
holder to acquire one Common Share at a price of CAD $0.15 per Common Share for a period of 18 months
following the closing date of the Offering.
The Offering is subject to TSX Venture Exchange
approval. The securities issued in connection with the
Offering will be subject to a four-month hold period, in accordance
with applicable securities laws.
It is anticipated that A.C.N. 117 402 838 PTY LTD
("A.C.N."), an insider of the Company, will acquire
15,000,000 Units under the Offering. Any participation by A.C.N. in
the Offering would constitute a "related party transaction" as
defined under Multilateral Instrument 61-101 Protection of
Minority Securityholders ("MI 61-101"). The Company
expects such participation would be exempt from the formal
valuation and minority shareholder approval requirements of MI
61-101 as neither the fair market value of the Units subscribed for
by insiders, nor the consideration for the Units paid by such
insiders would exceed 25% of the Company's market
capitalization.
CryptoStar intends to use the net proceeds from the Offering for
business operations and expansion of its business, and for general
working capital purposes. CryptoStar may pay a finder's fee to
eligible parties in connection with the Offering, subject to the
approval of the TSX Venture Exchange and compliance with applicable
securities laws.
About CryptoStar Corp.:
CryptoStar has cryptocurrency mining operations with data
centres located in the U.S.A. and
Canada. CryptoStar is currently
dedicated to becoming one of the lowest cost cryptocurrency
producers in North America and a
major supplier of GPU and ASIC miners and mining hardware &
hosting packages worldwide.
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this press release.
Forward-Looking Statements
This news release contains forward-looking statements.
Forward-looking statements can be identified by the use of words
such as, "expects", "is expected", "anticipates", "intends",
"believes", or variations of such words and phrases or state that
certain actions, events or results "may" or "will" be taken, occur
or be achieved. Forward-looking statements include those relating
to the completion of the Offering and the terms thereof, the
participation of insiders in the Offering and the use of net
proceeds from the Offering. Forward-looking statements are not a
guarantee of future performance and are based upon a number of
estimates and assumptions of management in light of management's
experience and perception of trends, current conditions and
expected developments, including assumptions related to the ability
of the Company to complete the Offering on commercially reasonable
terms, the approval of the TSX Venture Exchange of the Offering, as
well as other factors that management believes to be relevant and
reasonable in the circumstances. Actual results, performance or
achievement could differ materially from that expressed in, or
implied by, any forward-looking statements in this press release,
and, accordingly, you should not place undue reliance on any such
forward-looking statements and they are not guarantees of future
results. Forward-looking statements involve significant risks,
assumptions, uncertainties and other factors that may cause actual
future results or anticipated events to differ materially from
those expressed or implied in any forward looking statements.
Except as required by law, CryptoStar undertakes no obligation to
publicly update any forward-looking statements, whether as a result
of new information, future events or otherwise.
SOURCE CryptoStar Corp.