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TORONTO, May 16, 2019 /CNW/ - HyperBlock Inc. ("HyperBlock" or the "Company") (CSE: HYPR) announces that it no longer expects to file its financial statements, management's discussion and analysis and related officer certifications for the financial year ended December 31, 2018 (collectively, the "Annual Filings") by June 30, 2019, as previously announced. While the Company's annual audit is ongoing, due to complexities uncovered during the process, the Company now expects to file the Annual Filings on or before July 31, 2019.
Normal Operations at US Datacenter; Testing Bitmain Antminer S17 Servers
Normal operations continue at the Company's 20MW US datacenter, where it currently runs more than 10,000 servers. HyperBlock is currently testing next generation Bitmain Antiminer S17 servers, which have the potential to increase computational power while improving operating costs. The Company operates at an average electricity price below US 4 cents per kWh and current power contracts are expected to be active into Q3 2022. Operations in the Company's existing 20MW datacenter are unaffected by recently imposed Missoula County interim zoning regulations, which are applicable only to new operations.
The Company recently received notice that it will gain capacity at its US datacenter, as one of its hosting customers has opted to sell and will remove 1050 Bitcoin mining servers this month. With this new capacity, the Company plans to increase its self-mining operations — redeploying surplus Company-owned, Bitmain L3 Litecoin and Bitmain Antminer S9 servers over the immediate-term, while evaluating longer-term options.
HyperBlock Provides Bi-Weekly Market Update
On April 18, 2019, the Company announced a delay of the filings of its Annual Filings (the "Filings Notice"), which were required by April 30, 2019. Subsequent to the Filings Notice, the Company applied for and was granted a management cease trade order ("MCTO") on May 2, 2019 by the Ontario Securities Commission. The MCTO generally does not affect the ability of persons who have not been directors, officers or insiders of the Company to trade in their securities and will be in effect until the Annual Filings are filed, provided that HyperBlock complies with the terms of the order in the interim.
With the exception of the expected delay in the Company's ability to file its Annual Filings from June 30, 2019 to July 31, 2019 as disclosed above, the Company confirms that, since the date of the Filing Notice: (i) there is no material change to the information set out in the Filings Notice that has not been generally disclosed; (ii) there has been no failure by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines set out in NP 12-203; (iii) there has not been any other specified default by the Company under NP 12-203; and (iv) there is no other material information concerning the affairs of the Company that has not been generally disclosed. While subject to the MCTO, the Company will continue to comply with the provisions of the alternative information guidelines under NP 12-203 by issuing bi-weekly default status reports in the form of news until it has satisfied the necessary filing requirements.
About HyperBlock Inc.
HyperBlock is a leading publicly traded crypto-asset enterprise. The Company operates one of North America's most efficient cryptocurrency datacenters and provides complementary product offerings, which include cryptocurrency mining, Mining-as-a-Service (MAAS), server hosting and server hardware sales, depending on market conditions. HyperBlock is committed to operating as sustainably as possible, purchasing electricity from a hydro-electric dam for its current 20MW US datacenter — and employing advanced recycling technology to minimize environmental impact. Learn more at www.hyperblock.co
Cautionary Note Regarding Forward Looking Information and Future-Orientated Financial Information
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "plan", "believe", "may", "should", "anticipate", "expect", "intend", "forecast" and similar expressions. The forward-looking information contained in this press release includes, but is not limited to, statements related to: the anticipated filing of the Annual Filings; the benefits of using Bitmain Antiminer S17 servers; the status of the Company's current power contracts; the gain in capacity at the Company's US datacenter from the expected sale of bitcoin mining servers; and the increase in self-mining operations. These forward-looking statements contained herein are made as of the date of this press release and are based on assumptions and estimates of management, which management considers reasonable, based on information available on the date hereof. Such assumptions may be incorrect. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors, among other things, include: general economic, market and business conditions will be consistent with expectations, fluctuations in general macroeconomic conditions; fluctuations in securities markets; risks relating to the Company's ability to execute its business strategy and the benefits realizable therefrom, the ability to retain personnel to execute the Company's business plans and strategies; the ability to retain auditors to perform an audit of the Company's financial statements; the presence of laws and regulations that may impose restrictions on the ability of the Company to operate its business, including securities laws applicable to the Company; the speculative nature of cryptocurrency mining and blockchain operations including but not limited to cryptocurrency prices and mining difficulties; and those factors described under the heading "Risks Factors" in the Company's listing statement dated July 10, 2018 and the risks described in the Company's Management's Discussion & Analysis for the nine months ended September 30, 2018 dated November 29, 2018, each of which is available on the Company's issuer profile on SEDAR. There may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.
For further information: For media inquiries: 1-800-613-4721; For investor inquiries: Sean Walsh, [email protected], 1-800-613-4721