TORONTO, Dec. 20, 2021 /CNW/ - CryptoStar Corp. (TSXV: CSTR) (OTCQB: CSTXF) ("CryptoStar" or the "Company"), a cryptocurrency mining and data centre operator, provides an update on business operations and recent developments with respect to its power supply agreement ("PSA") for up to 30 megawatts (MW) with 611890 Alberta Inc. DBA Avila Energy (the "Alberta Partner") and its data centres in Alberta, Canada.
On December 1, 2021, the Company filed a Notice of Action and Notice of Motion against the Alberta Partner et al. with the Ontario Superior Court of Justice due to the Alberta Partner's non-compliance with terms of the PSA. On December 8, 2021, the parties agreed to adjourn the Notice of Motion on a returnable basis, in an attempt to resolve the outstanding issues.
The Company and the Alberta Partner are continuing to work to resolve the issues however the Company anticipates delays to the deployment dates for the Company's Equipment Hosting Agreements ("EHAs") for 5 MWs announced on August 31, 2021, 10 MWs announced on September 2, 2021 and 10 MWs announced on September 24, 2021. The impact of the delays will be a deferral of the associated revenues and may include financial credits as set out in the EHAs and temporary reductions in the Company's self-mining Hashrate and associated revenues in the event that equipment is relocated. The Company will provide further updates of any material changes.
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 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.
Forward-Looking Statements
This news release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as, "expects", "is expected", "anticipates", "intends", "believes", or variations of such words and phrases or state that certain actions, events or results "may" or "will" be taken, occur or be achieved. Forward-looking statements include those relating to CryptoStar's expectation for and the timing surrounding its power expansion in Alberta, Canada, the deployment dates, delays and revenues associated with the Equipment Hosting Agreements, the potential for temporary reductions in CryptoStar's self-mining Hashrate and associated revenues in the event that equipment is relocated, and CryptoStar's plans of becoming one of the lowest cost cryptocurrency producers in North America and a major supplier of GPU and ASIC miners worldwide. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances. Actual results, performance or achievement could differ materially from that expressed in, or implied by, any forward-looking statements in this press release, and, accordingly, you should not place undue reliance on any such forward-looking statements and they are not guarantees of future results. Forward-looking statements involve significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied in any forward-looking statements. Except as required by law, CryptoStar undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE CryptoStar Corp.
View original content: http://www.newswire.ca/en/releases/archive/December2021/20/c5651.html