CryptoStar Corp V.CSTR

CSTRNON BROKERED PVT PLACEMENT OF 20 MLNS UNITS( .10/$2MLNS)

[Humanist]

CryptoStar Corp. Announces Non-Brokered Private Placement of Units
  by @newswire on 17 Feb 2021, 10:04
   
TSXV: CSTR
TORONTO, Feb. 17, 2021 /CNW/ - CryptoStar Corp. (TSXV: CSTR) ("CryptoStar" or the "Company"), a cryptocurrency mining and data centre operator, today announced that it intends to conduct a non-brokered private placement (the "Offering") of up to 20,000,000 units ("Units") of the Company to raise up to $2,000,000 at a price of $0.10 per Unit.

Each Unit shall consist of one common share of CryptoStar (a "Common Share") and one common share purchase warrant of CryptoStar (a "Warrant"). Each Warrant shall entitle the holder to acquire one Common Share at a price of CAD $0.15 per Common Share for a period of 18 months following the closing date of the Offering.

The Offering is subject to TSX Venture Exchange approval. The securities issued in connection with the Offering will be subject to a four-month hold period, in accordance with applicable securities laws.
It is anticipated that A.C.N. 117 402 838 PTY LTD ("A.C.N."), an insider of the Company, will acquire 15,000,000 Units under the Offering. Any participation by A.C.N. in the Offering would constitute a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Securityholders ("MI 61-101"). The Company expects such participation would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the Units subscribed for by insiders, nor the consideration for the Units paid by such insiders would exceed 25% of the Company's market capitalization.
CryptoStar intends to use the net proceeds from the Offering for business operations and expansion of its business, and for general working capital purposes. CryptoStar may pay a finder's fee to eligible parties in connection with the Offering, subject to the approval of the TSX Venture Exchange and compliance with applicable securities laws.
About CryptoStar Corp.:
CryptoStar has cryptocurrency mining operations with data centres located in the U.S.A. and Canada. CryptoStar is currently dedicated to becoming one of the lowest cost cryptocurrency producers in North America and a major supplier of GPU and ASIC miners and mining hardware & hosting packages worldwide.
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.