VANCOUVER, April 25, 2018 /CNW/ - HashChain
Technology Inc. ("HashChain" or the "Company") (TSXV:
KASH; OTCQB: HSSHF) announced today that the Company has entered
into a binding letter agreement (the "Binding Agreement") to
acquire 100% of the outstanding shares of a company
("Target") in consideration for the issuance of 55 million
HashChain shares at a deemed price of $0.35 per share (the "HashChain Shares")
equivalent to $19.25 million.
The Purchase Price will be allocated as follows:
- 5,000 new S9 Antminer Rigs ("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
The HashChain Shares will be subject to escrow and will be
released as follows:
- 22,000,000 on the closing date of the acquisition (the
"Closing Date");
- 11,250,000 on installation of the 5,000 Rigs in the facility
the Target currently has an agreement with;
- 5,250,000 in 90 days from the Closing Date; and
- 16,500,000 in 120 days from the Closing Date
The acquisition is subject to the approval of the TSX Venture
Exchange and due diligence by HashChain.
The Company expects the additional 5,000 rigs will be fully
operational by the end of June 2018.
This will be added to the 4,870 rigs that HashChain has already
purchased and committed pending its recent announcement of the
acquisition of a company with 1,000 Rigs, bringing total rigs to
9,870, which is the equivalent of approximately 15 megawatts.
Based on 770 Rigs currently operating, the Company mined 27.92
Bitcoins in 38 days of operations, equivalent of .735 Bitcoin per
day and has not exchanged any Bitcoin into Fiat to date. According
to coinmarketcap.com on April 25,
2018, Bitcoin was valued at CAD $11,737. The mined value of Bitcoin at that price
equates to CAD $327,697 over 38 days
for the Company which is the equivalent of CDN $11.20 per day per Rig.
HashChain notes there are material costs associated with mining
and it will need to complete its next quarterly financial
statements to have complete details on such costs. The
Company will report full details on its costs associated with
mining in its financial statements. At this time the Company
has not converted the Bitcoin and Dash into fiat currency.
"HashChain continues to fulfill our commitment to investors with
fast-scaling cryptocurrency mining operations in ideal low-cost
data centres, even as we continue to grow our business in other
areas of the blockchain market," says Patrick Gray, CEO and founder
of HashChain. "In under a month, the Company has increased our Rig
count by 6,000 and we will continue to build on this momentum and
increase the revenue stream from our core mining business."
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.'
Diversifying its business strategy beyond crypto mining, the
Company acquired NODE40, a blockchain technology company that
developed NODE40 Balance, a new SaaS product making cryptocurrency
accounting and 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.
HashChain Mining is a wholly owned subsidiary of HashChain
Technology Inc. based out of Albany, New
York, and an office in Vancouver,
British Columbia and Geneva,
Switzerland.
On Behalf of the Board,
Patrick Gray
CEO & Director
For Further information please contact:
HashChain Technology Inc.
Larry Heinzlmeir
Vice President, Marketing & Communications
Larry@HashChain.ca
604-537-8676
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
acquisition by the Company of the company with the 5,000 Rigs (the
"Transaction"), including the anticipated benefits to the Company
of the Transaction, the anticipated performance of a total of 9,870
Rigs, the expected timing of delivery and installation of 5,000
Rigs by the end of June 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, including that all conditions to the closing of the
Transaction will be satisfied, including receipt of all required
approvals, and the Transaction will complete on the terms set out
in the Agreement, the 9,870 Rigs will perform as expected by
management, 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. Such risk factors may include,
among others, the risk that the conditions to the closing of the
Transaction will not be satisfied, including the risk that required
approvals are not obtained, and that the Transaction will not
complete on the terms set out in the Agreement or at all, the risk
that the Transaction, if closed, will not result in the anticipated
benefits to the Company; the risk that the 9,870 Rigs will not
perform as expected by management and the risk that the 5,000 Rigs
will not be successfully delivered and deployed by the end of
June 2018, or at all. 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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SOURCE HashChain Technology Inc.
