TORONTO, Dec. 31, 2018 /CNW/ - HyperBlock Inc. (CSE: HYPR) — one of North America's largest publicly traded diversified crypto asset enterprises — announced today that it has signed a five-year USD$2.65M financing agreement to fund the first phase of its US cryptocurrency datacenter expansion.
HyperBlock CEO Sean Walsh noted: "The funds will be used to fund an expansion which will allow the company to triple our operating capacity — from 20MW to up to 60MW — at our Project Northwest datacenter." Work on the substation expansion is already underway and the company will provide further market updates as expansion milestones are achieved.
Under the terms of the financing, HyperBlock obtained USD$2.65M in low-cost project financing from one of its banking partners to complete electrical infrastructure upgrades on the property at an attractive interest rate of prime + 2.99% — and a 5-year repayment term among other terms.
HyperBlock Focuses on Building Long-Term Value
"As so many abandon cryptocurrency mining, HyperBlock continues to reduce costs, invest and build for the future," says Walsh. "We have built a strong, mutually beneficial working relationship with our various business partners, and this project financing announcement is one example of their confidence in our vision," explains Walsh, a veteran cryptocurrency operator, investor, and thought leader. "Historically, it is during tough market periods like this, that true value is created, and market leaders emerge," he says.
Options and Shares Granted
HyperBlock also announced that it has granted, effective December 28, 2018, 5,625,000 incentive stock options ("Options") and 5,375,000 restricted share units ("RSUs") to key officers, employees, and consultants covering a total of 11,000,000 HyperBlock common shares. All of the Options have an exercise price of CAD$0.05 per common share and expire on December 28, 2022. Options and RSUs vest immediately for key directors of HyperBlock. For employees and consultants, the Options and RSUs vest over a period of one to two years, with a portion (ranging from 1/4th to 1/8th) vesting immediately. The awards were approved by the company's board of directors. All of the Options, RSUs (and any common shares issuable thereunder) will be subject to applicable securities law hold periods. The grant of Options and RSUs are made under HyperBlock's equity incentive plans, which are posted on SEDAR. On August 13, 2018, HyperBlock erroneously filed a Form 11 – Notice of Proposed Stock Option Grant or Amendment disclosing that it had granted 10,244,000 stock options to certain directors, officers and employees. HyperBlock did not issue any stock options in connection with such notice. The grant of 5,625,000 Options and 5,375,000 RSUs disclosed today represent the first grants of equity compensation since the listing of the company on the Canadian Securities Exchange on July 11, 2018. This press release is intended, in part, to correct HyperBlock's public disclosure in this regard. In addition, pursuant to the original advisory agreement related to HyperBlock's acquisition transaction — which closed on July 10, 2018 — 2,285,714 common shares of the company have been issued to the company's financial advisor Canaccord Genuity Corp.
About HyperBlock Inc.
HyperBlock is one of North America's largest publicly traded diversified crypto-asset enterprises. The company operates one of North America's largest and most efficient cryptocurrency datacenters and provides five complementary product offerings focused on helping people and businesses create, safeguard, manage and grow crypto-assets. HyperBlock profit centers include cryptocurrency mining, Mining-as-a-Service (MAAS), server hosting, server hardware sales and a proprietary custodial vault product. 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 "may", "should", "anticipate", "expect", "intend", "forecast" and similar expressions. These forward-looking statements 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: that market prices will be consistent with expectations, the continued availability of capital and financing, general economic, market and business conditions will be consistent with expectations, fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in the prices of cryptocurrencies mined by the company; historical prices of cryptocurrencies and the ability of the company to mine cryptocurrencies consistent with historical prices; the ability to retain personnel to execute the company's business plans and strategies; availability of power supply at prices favorable to the business and operations of the company, or at all; higher operating costs; 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; changes in project parameters as plans continue to be evaluated; competition in the company's operating markets; 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: Brent Arsenault, [email protected], 1-800-613-4721