ALBANY, N.Y., May 4, 2021 /PRNewswire/ -- EcoChain, Inc.
("EcoChain"), a wholly-owned subsidiary of Mechanical
Technology, Incorporated ("MTI" or the "Company"), (NASDAQ: MKTY),
a cryptocurrency mining business powered by renewable energy, today
announced two new lease agreements located in the Southeast United States, providing EcoChain
with access to ultra-low cost energy with an existing building and
surrounding land for additional capacity. The miners, purchased
under a previous agreement, will be relocated to the leased
building.
The first lease includes a 25-year term for a building and surrounding
land with immediate capacity at closing of approximately 12
megawatts, upgradable to 14.1 megawatts. EcoChain, through a
wholly-owned subsidiary, entered into a second lease for vacant
land adjacent to such premises; an additional 10 megawatts can be
supplied to the premises under the building lease or the land lease
as determined by EcoChain. Further, an exclusive opportunity
to obtain up to an additional 100 megawatts, subject to further
terms to be negotiated. Key terms of the agreements include:
Building Lease:
- At closing, approximately 12 megawatts of capacity will be
under management
- Upgrade capacity for additional megawatts up to a total of 14.1
megawatts
- Consideration to be paid at closing will be, $500 thousand in cash and $4 million will be payable periodically in the
proration of the building vacancy, payable in cash or shares of the
Company's common stock in equal value to the calculated payment,
share price calculated as of the prior days closing price. Complete
building vacancy is scheduled no later than March 31, 2022 with final payment made within 60
days of such vacancy. EcoChain will receive certain payments in the
short term, until the hosting clients vacate the building.
- The negotiated power cost is about $.023 per kWh for 83% uptime
Land Lease:
- Vacant land upon which to build improvements to use 10
megawatts
- Exclusive opportunity to utilize land with up to an additional
100 megawatts
- Consideration to be paid at closing will be 100,000 shares of
the Company's common stock
"We are pleased to announce this transaction as we continue to
execute precisely as planned towards our goal of 50 megawatts under
management. This is a transformative transaction that helps us meet
our growth plan and continues to build on our solid foundation. As
we deploy processing power at the site, we expect this transaction
will continue to demonstrate to stockholders our laser focus on
return on invested capital," said
Michael Toporek, CEO of MTI.
A presentation and corresponding video is available on the
Company's website at
https://ecochainmining.com/news/transformational-transaction-overview/.
About EcoChain, Inc.
EcoChain, Inc., a wholly-owned subsidiary of Mechanical
Technology, Incorporated, is engaged in developing and operating
ultra-low cost green data centers focused on cryptocurrency mining.
For more information about EcoChain, please visit
www.ecochainmining.com.
Forward Looking Statement
This communication contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements reflect management's current
expectations, as of the date of this communication, and involve
certain risks and uncertainties. Forward-looking statements include
statements herein with respect to the successful execution of the
Company's business strategy. The Company's actual results could
differ materially from those anticipated in these forward-looking
statements as a result of various factors. Such risks and
uncertainties include, among other things, our ability to establish
and maintain the proprietary nature of our technology through the
patent process, as well as our ability to possibly license from
others patents and patent applications necessary to develop
products; the availability of financing; the Company's ability to
implement its long range business plan for various applications of
its technology; the Company's ability to enter into agreements with
any necessary partners; the impact of competition, the obtaining
and maintenance of any necessary regulatory clearances applicable
to applications of the Company's technology; and management of
growth and other risks and uncertainties that may be detailed from
time to time in the Company's reports filed with the Securities and
Exchange Commission.
Contact Information:
Jess
Olszowy
jolszowy@mtiinstruments.com
Investor Relations:
Kirin
Smith, President
PCG Advisory, Inc.
646.823.8656
Ksmith@pcgadvisory.com
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SOURCE Mechanical Technology, Incorporated