VANCOUVER, April 23, 2018 /CNW/ - HashChain Technology Inc. ("HashChain" or the "Company") (TSXV: KASH; OTCQB: HSSHF) announced today that the Company has entered into a letter agreement (the "Agreement") to acquire a company with 1,000 new S9 Antminer Rigs ("Rigs") in consideration for the issuance of 8.9 million HashChain shares at a deemed price of $0.35 per share (the "HashChain Shares").
The HashChain Shares will be subject to escrow whereby 40% of the HashChain Shares will be released on the closing date of the acquisition (the "Closing Date"), 30% of the HashChain Shares will be released 60 days following the Closing Date and the remaining 30% of the HashChain Shares will be released 90 days following the Closing Date. The acquisition is subject to the approval of the TSX Venture Exchange.
Currently, 100 of the rigs are resident in the Company's Montana, USA mining facility ("Montana Facility"), and the other 900 will arrive and be deployed by the end of May 2018. This will be added to the 3,870 rigs that HashChain has already purchased bringing total rigs to 4,870 which is the equivalent of approximately 7 megawatts.
"While HashChain continues to diversify our business strategy to include other blockchain-related software and services, we will remain dedicated to expanding our mining sector," says Patrick Gray, CEO and founder of HashChain. "The Company's unique ability to quickly order and receive large quantities of Rigs helps us scale at an accelerated rate in ideal mining locations to reduce operational expenditure and ensure ROI on coin mined. This latest 1,000 Rigs when deployed, will increase our Mining to 7 megawatts. All of these rigs are new giving us longevity in our mining operations"
Given that the Company has identified other Rig supply arrangements at a reduced cost per Rig as outlined in this announcement, it does not intend on paying cash for the remaining 2,000 Rigs as previously announced.
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.' HashChain currently operates 100 DASH mining Rigs, 1,770 Bitcoin Rigs, and has received an additional 3,000 Rigs. Once all Rigs are operational HashChain will be consuming approximately 7 megawatts of power. HashChain also acquired a Dash Masternode, which requires a collateral investment of 1,000 DASH coins. Diversifying its business strategy beyond crypto mining, the Company recently acquired NODE40, a blockchain technology company that developed NODE40 Balance, a new SaaS product making cryptocurrency 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 and is seeking additional alternate coin masternode hosting.
HashChain Mining is a wholly owned subsidiary of HashChain Technology Inc. based out of Albany, New York, and an office in Vancouver, British Columbia.
On Behalf of the Board,
CEO & Director
For Further information please contact:
HashChain Technology Inc.
Vice President, Marketing & Communications
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 1,000 Rigs (the "Transaction"), including the anticipated benefits to the Company of the Transaction, the anticipated performance of a total of 4,870 Rigs, the expected timing of delivery and installation of 1,000 Rigs by the end of May 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 4,870 Rigs will perform as expected by management, the 1,000 Rigs will be successfully delivered and deployed and the timing of delivery of the 1,000 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 4,870 Rigs will not perform as expected by management and the risk that the 1,000 Rigs will not be successfully delivered and deployed by the end of May 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.
SOURCE HashChain Technology Inc.