(via TheNewswire)
Vancouver, BC - TheNewswire - December 16, 2019 - HashChain Technology Inc. ("HashChain" or the "Company") (TSXV:KASH) (OTC:HSSHF) is pleased to provide a corporate update in respect of its strategy to vertically integrate the Company's operations with the hosting services currently provided to the Company by Bit.Management, LLC by way of its previously announced reverse takeover transaction (the "Proposed Transaction") with Digihost International, Inc. ("Digihost"), previously disclosed in the Company's press releases of March 28, 2019, April 26, 2019, June 7, 2019, July 29, 2019, September 11, 2019, November 29, 2019 and December 9, 2019.
The Proposed Transaction and matters related thereon will be submitted to shareholders of the Company at an annual general and special meeting of its shareholders (the "Meeting"). The upcoming Meeting will be held on January 14, 2020 at 10:00 a.m. at the offices of Peterson McVicar LLP, located at Suite 902, 18 King Street E., Toronto, Ontario. A copy of the management information circular which explains the terms of the Proposed Transaction is available under the Company's profile on SEDAR at www.sedar.com.
Management of the Company anticipates that the completion of the Proposed Transaction would provide a number of benefits to HashChain, including:
- reduced costs of cryptocurrency mining through the vertical integration of HashChain's operations and the termination of the hosting services agreement with Bit.Management, LLC, who the Company currently pays for rent for the physical space of its rigs and for the electricity used in its cryptocurrency operations;
- release from accrued liabilities owing to Bit.Management, LLC pursuant to the hosting services agreement; and
- increased access to capital as a result of the minimum $5.4 million concurrent financing of Digihost to be completed prior to completion of the Proposed Transaction.
"The proposed transaction with Digihost International provides a great opportunity for the Company to reduce its cost of mining and deploy capital to acquire new miners to expand the business. We are very excited by what Michel Amar and the rest of the Digihost team bring to the table and look forward to the Company's future," said Patrick Gray, CEO of HashChain.
Upon completion of the Proposed Transaction, the mining operation will have 12,895 Bitcoin mining rigs with the ability to expand to 17.5 MW of computing power with electricity at an average all-in cost of USD$0.05/kWh. The operating facility is located in Buffalo, New York, with over 70,000 square feet under a five-year lease and an option to lease additional facility space totalling 240,000 square feet after 3 years. HashChain will focus on validation through mining, hosting solutions and blockchain software solutions.
Conditions to Completion of the Proposed Transaction and Regulatory Matters
Completion of the Proposed Transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable, disinterested shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Additional Information
For further information, please contact:
HashChain Technology Inc.
Paul Ciullo, Chief Financial Officer
T: 607-760-7870
Digihost International, Inc.
Angie Ihler, Media Inquiries
T: 917-242-6549
Cautionary Statements:
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the review and approval of future investor presentations, the completion and terms and conditions of the Proposed Transaction, the HashChain Meeting, the go-forward management of the resulting issuer and the trading of the resulting issuer shares, the anticipated benefits of the Proposed Transaction and the development of the resulting issuer's business and operations. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; and the delay or failure to receive board, shareholder, court or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, HashChain assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has in any way passed upon the merits of the Proposed Transaction and associated transactions and neither of the foregoing entities has in any way approved or disapproved of the contents of this press release.
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.
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