VANCOUVER, Jan. 4, 2018 /CNW/ - HashChain Technology Inc.
("HashChain" or the "Company") is pleased to announce
that it has signed a commitment for space for Mining operations of
up to 20 megawatts in a facility in Montana, USA ("Montana Facility"). The
Company has also signed a purchase order (the "Purchase
Order") with its supplier ("Supplier") of cryptocurrency
mining rigs ("Rigs") to facilitate orders on behalf
of the Company with a manufacturer (the "Manufacturer") to
acquire 5,000 Rigs. Upon delivery and installation of these Rigs
and the 770 Rigs previously disclosed, the Company's total number
of Rigs will increase to 5,870 and its total Mining capacity will
increase to approximately 8.7 megawatts. The 5,000
Rigs are expected to be received in multiple deliveries
between February 28 and May 15, 2018,
subject to HashChain closing the previously announced $26 million bought deal financing. The
consideration payable by the Company in respect of the 5,000 Rigs
and the sourcing of the 20 megawatt commitment at the Montana
Facility is to be comprised of staged payments expected to total
USD$20,452,500 plus applicable taxes
(the "Expected Total Consideration"), subject to increase in
certain circumstances (as described in greater detail below) of
which USD$15,952,500 will be
payable in cash and USD$4,500,000
will be payable in common shares of HashChain (the
"Shares"), and a payment of 210,000 common shares of
HashChain as a milestone payment for each megawatt (or portion
thereof, pro-rata) that becomes operational ("Milestone
Shares"). The Expected Total Consideration is based on
the current price at which the Supplier is able to source Rigs from
the Manufacturer. In the event that the Manufacturer increases the
price at which it will make Rigs available to the Supplier or the
Company, the Expected Total Consideration will be increased
accordingly. The issuance of the Shares and Milestone Shares are
subject to TSX Venture Exchange approval. The Shares are required
to be issued in stages as the Company takes delivery of the Rigs.
The Shares will be issued at a deemed issue price of CDN$3.00, converted to USD$2.34375, provided that in the event the
Company's share price is lower than CDN$3.00 at the time Rigs are delivered, the
number of the applicable common shares will be adjusted based on
the lower share price on date of delivery and using the same
exchange rate. There can be no assurance that the 5,000 Rigs will
be successfully acquired by the Company. See "Cautionary Note
Regarding Forward Looking Statements" below.
As previously disclosed, In November
2017 the Company ordered 770 Rigs for a total purchase price
of USD $2,461,940 (the
"November 2017 Purchase"),
pursuant to the supply agreement between the Company and the
Supplier (the "November 2017
Supply Agreement"). The Company expects to receive the Rigs in
January 2018. The Company will spend
approximately 1 week installing and configuring the Rigs with
expectation that Rigs will be mining by the end of this month
increasing HashChain's total Rigs in operations to 870 with 1.24
megawatts operational. The Company has paid USD$1,688,439 of the purchase price to date. As
set out in the Company's prospectus dated December 12, 2017 (the "Prospectus"), the
balance of the purchase price of USD$773,500 was to be satisfied by the issuance
of common shares of the Company at a deemed issue price of
CDN$0.15 per share (the
"Contingent Payment Shares"), being the price at which the
Company had most recently issued common equity at the time of the
November 2017 Purchase, at an
exchange rate of $1.28CDN /
$1.00USD, if the 770 Rigs are
delivered on or before January 31, 2018. Based on the original
terms of the November 2017
Purchase, 6,600,533 Contingent Payment Shares were to be issuable
to the Supplier (not 603,906, the number included in the Prospectus
as a result of a typographical error), however the Company and the
Supplier have amended the terms of the November 2017 Supply Agreement to reduce the
number of Contingent Payment Shares to 5.5 million, with 50%
vesting immediately upon delivery of the Rigs, and another 50%
vesting once the Rigs have been operational for 30 days.
A "Rig" is a high-performance computer system used for
cryptocurrency Mining; each Rig is used to solve complex
computation puzzles to confirm transactions on the Blockchain.
"Mining" is the process in which individuals, often in
collaboration and through the use of Rigs, solve complex,
computation puzzles to confirm transactions to be added on a
blockchain. Miners who successfully complete the mining process
earn a reward in the form of cryptocurrency or other Blockchain
coin or token.
Pat Gray, CEO and director of
HashChain, commented, "Our recently announced $26 million bought financing will, upon closing,
provide enough capital to fulfill the terms of these agreements and
continue to execute on our business plan. According to the 2017
Global Cryptocurrency Benchmarking Study, North America meets all criteria for optimal
cryptocurrency mining, including low cost of electricity, low
temperature and high-speed internet. We continue to execute our
plan of utilizing North America's
ideal setting".
About HashChain Technology Inc.
HashChain is a Blockchain mining company, and the first publicly
traded (TSXV:KASH) Canadian cryptocurrency mining company to file a
final prospectus supporting highly scalable and flexible mining
operations across all major cryptocurrencies. HashChain taps
low-cost North American power, cool climate and high-speed
Internet: the trifecta most critical to mining success, to create a
competitive position for maximizing the number of mining
'wins.' HashChain currently operates 100 Dash mining rigs, has
purchased 770 Bitcoin rigs and has entered into a purchase order
for an additional 5,000 Rigs. Once all Rigs are operational
HashChain will be consuming approximately 8.7 megawatts of power.
HashChain also acquired a Dash Masternode for approximately USD
$280,000 which requires a collateral
investment of 1,000 Dash coins. HashChain is based in
Vancouver, British Columbia.
HashChain Mining is a wholly owned subsidiary of HashChain
Technology Inc. based out of Albany, New York.
For further details of the Company's business, please refer to
the Company's final prospectus dated December 12, 2017, which is available on the
Company's SEDAR profile at www.sedar.com or visit
http://www.hashchain.ca.
On Behalf of the Board,
Patrick Gray
CEO & Director
For Further information please contact:
HashChain
Technology Inc.
Larry Heinzlmeir
Vice President, Marketing & Communications
Larry@HashChain.ca
604-537-8676
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward Looking Statements:
Certain disclosure in this release, including statements regarding
the acquisition and performance of 5,000 Rigs by the Company, the
expected timing of delivery and installation of 770 Rigs and
expectations regarding future operations may constitute
forward-looking statements. In making the forward-looking
statements in this release, the Company has applied certain factors
and assumptions that are based on the Company's current beliefs as
well as assumptions made by and information currently available to
the Company, including that the previously announced $26 million bought deal financing (the
"Financing") will close, the 5,000 Rigs will be successfully
ordered and delivered, the 5,000 Rigs will perform as expected by
management and the timing, installation and performance of the
770 Rigs will be consistent with management's expectations.
Although the Company considers these assumptions to be reasonable
based on information currently available to it, they may prove to
be incorrect, and the forward-looking statements in this release
are subject to numerous risks, uncertainties and other factors that
may cause future results to differ materially from those expressed
or implied in such forward-looking statements. Such risk factors
may include, among others, the risk that the Financing will not
close, the risk that the 5,000 Rigs will not be successfully
ordered from the manufacturer or, if so ordered, that the Rigs will
not be delivered to the Company when expected by management or at
all, the risk that the 5,000 Rigs will not perform as expected by
management and the risk that the 770 Rigs will not be delivered to
the Company or that the timing of the delivery and installation or
the performance of the 770 Rigs will not be as expected by
management. Readers are cautioned not to place undue reliance
on forward-looking statements. The Company does not intend, and
expressly disclaims any intention or obligation to, update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
law.
SOURCE HashChain Technology Inc.