TORONTO, Sept. 27, 2018 /CNW/ - CryptoStar Corp. (formerly Aumento Capital VI Corporation) (the "Company") is pleased to announce the closing of its Qualifying Transaction (the "Transaction"), as defined under the policies of the TSX Venture Exchange ("TSXV"), pursuant to the definitive qualifying transaction agreement dated August 17, 2018 between the Company, 2626694 Ontario Inc. (the "Subsidiary"), a wholly-owned subsidiary of the Company, and CryptoStar Inc. ("CryptoStar").
The Transaction involved the acquisition by the Company of all of the issued and outstanding common shares in the capital of CryptoStar ("CryptoStar Shares") by way of a three-cornered amalgamation. As part of the Transaction, CryptoStar amalgamated with the Subsidiary to form "CryptoStar Holdings Inc.", a wholly-owned subsidiary of the Company.
Consolidation and Name Change
As a result of the Transaction, the Company changed its name to "CryptoStar Corp."
In connection with the Transaction, the Company issued:
an aggregate of 205,500,000 common shares ("Common Shares") in exchange for the outstanding CryptoStar Shares; and
an aggregate of 13,204,700 warrants to purchase Common Shares in exchange for the outstanding warrants to purchase CryptoStar Shares, each exercisable into one Common Share at a price of $0.50 with expiry dates ranging from January 4, 2020 to January 4, 2021.
Following completion of the Transaction, the Company has an aggregate of 208,752,800 Common Shares issued and outstanding.
It is anticipated that the Common Shares will begin trading on or about October 1, 2018 on the TSXV under the trading symbol "CSTR".
Changes in Board and Management
Upon completion of the Transaction, David Danziger, Roger Daher and Paul Pathak resigned their positions as directors and officers of the Company.
David Jellins, Amelia Jones, James Merkur, Adam Kline and Brendan Cahill have been appointed as directors of the Company.
David Jellins has also been appointed the President and Chief Executive Officer, Jing Peng has been appointed the Chief Financial Officer and Corporate Secretary, Amelia Jones has been appointed the Chief Commercial Officer and Corey Dozhier has been appointed the Chief Operating Officer.
Grant of Options
In connection with the closing of the Transaction, a total of 2,600,000 stock options (collectively, the "QT Options") have been granted to the directors, officers and consultants of the Company pursuant to the Company's stock option plan. The QT Options are exercisable for a period of ten years at a price of $0.50 per share.
Correction to Filing Statement
The Company further advises of a correction to its filing statement dated August 17, 2018 (the "Filing Statement"). The Company wishes to clarify that the QT Options are not required to be held in escrow under the policies of the TSXV. Accordingly, the only escrowed securities of the Company are the CPC Escrow Shares (as defined in the Filing Statement) and the 162,500,000 Common Shares and 10,000,000 warrants to purchase Common Shares held by Adrenaline Pty Ltd.
About CryptoStar Corp.
CryptoStar Corp. is one of the world's largest cryptocurrency mining operations with data centres located in the USA, Canada and Iceland. CryptoStar Corp. is currently dedicated to further expansion into low cost energy regions in North America and around the globe.
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:
The information in this press release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements, including statements with respect to the anticipated date of listing of the Company's shares on the TSXV. These statements are based upon assumptions that are subject to significant risks and uncertainties, including assumptions that all conditions to the listing of the Company's shares on the TSXV will be satisfied and all requisite approvals will be received in a timely manner. Although the Company considers these assumptions to be reasonable based on currently available information, the same may prove to be incorrect, and the forward looking statements in this press 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 required approvals and the satisfaction of material conditions to listing are not satisfied or waived in a timely manner or at all, risks related to the digital currency market such as a decline in digital currency prices, risks relating to electricity and other operating costs in the jurisdictions in which the Company operates and the Company's ability to successfully mine digital currency. Although the Company believes that the expectations reflected in forward looking statements are reasonable, no assurance can be given that the expectations of any forward looking statements will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
SOURCE CryptoStar Corp.
For further information: CryptoStar Corp., Attention: David Jellins, President and Chief Executive Officer, Email: [email protected], W: www.cryptostar.com