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,
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 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.
SOURCE HashChain Technology Inc.