TORONTO, March 1, 2018 /CNW/ - Arctic Blockchain Ltd ("Arctic Blockchain"), a private BC Company, is pleased to announce that it has completed a fund raising for total proceeds of C$10,000,000 and subsequently closed the acquisition of Hydro66 UK Limited ("Hydro66"). The combination of Arctic Blockchain and Hydro66 creates a well-funded, growth-oriented datacenter business with strong technical and financial leadership. Hydro66 is well positioned to capitalize on future growth in high power computing with a focus on both blockchain technologies and cryptocurrency mining.
Hydro66, based in Boden, Northern Sweden, is an award-winning datacenter company that has been operating since 2014, offering enterprise co-location services as well as mining cryptocurrency on its own account and for customers, continuously since inception. The Hydro66 flagship facility has installed operating capacity of 4MW with an additional 36MW of capacity under construction. Beyond the 40MW of power secured for the current expansion, Hydro66 has also reserved an additional 50MW of power capacity for future expansion. The facility is 100% environmentally friendly using hydro-power and an innovative building and cooling system was designed to allow for free air cooling 365 days per year. The build out to the full 40MW capacity will be completed by Q1 2019.
The combined business will continue under the leadership of Hydro66's current management team that has extensive experience both in building and operating datacenters globally, but also operating locally. Members of the Arctic team will augment the board of directors and a public listing on a Canadian exchange is planned to be completed in early Q2 2018. The go-forward business plan will be to continue the aggressive build-out to 40MW capacity and focus on filling the datacenter halls with a balance of enterprise and wholesale cryptocurrency customers, while reserving capacity for self-mining of cryptocurrency when pricing, difficulty and equipment availability align to provide a favorable return of capital. In the last few several weeks, Hydro66 has already taken delivery of its first shipment of new GPU crypto-mining equipment, as part of an initial investment in 1MW of crypto mining rigs over the next months.
David Rowe, Chairman of Hydro66 states: "It is good to strengthen our capital base as we build out our award-winning facility. The additional capital not only gives us further confidence in our plans but allows us to be opportunistic in our thinking. The path towards a public listing will provide access to larger pools of capital as we expand our ambitions and footprint."
Anne Graf, CEO of Hydro66 states: "I am very pleased to welcome Arctic Blockchain in Canada to our project. Richard Patricio and his colleagues have demonstrated great success in traditional mining over many years, both globally and in the Nordic countries. Their experience in capital deployment and understanding of crypto mining will be extremely valuable as we expand our current site and develop further our plans in co-location and wholesale crypto as well as self-mining opportunities."
Richard Patricio, CEO of Arctic Blockchain, states: "After assessing several opportunities to enter the crypto mining space we identified that businesses which own and control physical assets, land, buildings and power, as well as having deep technical experience, will be best suited to profit in this evolving market place. Hydro66 stands apart from the field in this regard and the asset base we have acquired and are aiding to build will have real value, in the future for cryptocurrency, the blockchain and high-performance computing. We look forward to being part of this exciting new chapter with David and Anne and the rest of the Hydro66 team."
On behalf of the Board,
Richard Patricio, President & CEO
Accuracy of Information: Except for the statements of historical fact, this new release contains "forward-looking information" (within the meaning of the applicable Canadian securities legislation) that is based on expectations, estimates and projections of the Company and Hydro66 UK Ltd ("Hydro66") as of January 15, 2018. The information in this news release about the completion of any transaction including acquisition of any data centers, the business goals and objectives of the Company, any estimate of potential earnings, the performance of any obligations of parties to transaction agreements, and other forward-looking information, includes but is not limited to information concerning the intentions, plans, and future actions of the parties to the transactions described herein and the terms thereon.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, risks related the cryptocurrency markets generally, the Company's ability to successfully mine cryptocurrency, and other risks.
The forward-looking information in this new release reﬂects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions, including, but not limited to assumptions about the Company's and Hydro66's ability to complete any contemplated transactions, about historical prices of cryptocurrencies and the ability of the Company to successfully mine cryptocurrencies consistent with historical prices, and that there will be no regulation or law that will prevent the Company from operating its business. The Company has also assumed that no signiﬁcant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
In relation to the United States and U.S. Persons, this news release is strictly confidential and is being furnished to a limited number of investors in reliance on applicable exemptions from the registration requirements under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"). The debentures, and the shares of the Company into which such debentures are convertible, have not and will not be registered under the U.S. Securities Act or any state securities law and may not be offered or sold within the United States unless an exemption from the registration requirements of the U.S. Securities Act is available. Accordingly, any offer or sale of debentures will only be offered or sold (i) within the United States to institutional "accredited investors" (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the U.S. Securities Act) in a private placement transaction not involving a public offering and (ii) outside the United States in offshore transactions in accordance with Regulations S of the U.S. Securities Act. Neither the U.S. Securities and Exchange Commission, nor any other U.S. authority, has approved this news release. This news release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. Any such offers and sales will be made pursuant to a separate subscription agreement and related documents that will be provided to investors at a later date.
SOURCE Arctic Blockchain Ltd
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