HashChain Technology Completes Previously Disclosed Acquisition of 5,000 Rigs
Vancouver, BC, July 12, 2018 - HashChain Technology Inc. ("HashChain" or the "Company") (TSXV: KASH; OTCQB: HSSHF) is pleased to announce it has closed its acquisition of two cryptocurrency mining companies (the “Targets”) contributing an aggregate total of 5,000 more Antminer S9 Rigs (“Rigs”) to HashChain’s existing 4,495 Rigs. HashChain acquired all of the issued and outstanding shares of the Targets for an aggregate of 55 million HashChain shares at a deemed price of $0.35 per share (the “HashChain Shares”) for a total aggregate deemed value of $19.25 million.
Purchase Price Allocation
- 5,000 Rigs at $1,500 CDN per Rig equals $7,500,000;
- 7.5 Megawatts (“MW”) installed for $700,000 per MW equals $5,250,000;
- 5-year commitment from the existing Targets’ management at $300,000 per year equals $1,500,000;
- 15 MW facility commitment for 4 years equals $2,000,000; and
- Goodwill equals $3,000,000.
Terms of the Agreement
- 22,000,000 HashChain Shares issued on the closing date of the Acquisition (the “Closing Date”);
- 11,250,000 HashChain Shares issued on the date the 5,000 Rigs are installed in a HashChain mining facility;
- 5,250,000 HashChain Shares 90 days from the Closing Date; and
- 16,500,000 HashChain Shares 120 days from the Closing Date.
“With these acquisitions, HashChain continues to build its substantial repository of cryptocurrency mining Rigs,” says Patrick Gray, CEO of HashChain. “We are currently installing the remaining 4,000 Rigs in our mining facility, which upon expected completion at the end of the month will net us 9,495 Rigs operating at 14 megawatts of power.”
About HashChain Technology Inc.
HashChain is a blockchain company, and the first publicly traded (TSXV: KASH; OTCQB: HSSHF) 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 and 5,395 Bitcoin Rigs with an additional 4,000 to be deployed upon successful completion of its recently announced acquisitions. Once all Rigs are operational HashChain will be consuming approximately 14 megawatts of power. HashChain also acquired two Dash Masternodes, which requires a collateral investment of 1,000 DASH coins for each Masternode.
HashChain Mining is a wholly owned subsidiary of HashChain Technology Inc. based out of Albany, New York, and an office in Vancouver, British Columbia.
On Behalf of the Board,
CEO & Director
For Further information please contact:
HashChain Technology Inc.
Vice President, Marketing & Communications
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: This release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws, including statements regarding the successful completion of the acquisition and/or installation of an aggregate of 5,000 more Rigs, and expectations regarding future operations may constitute forward-looking statements. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should” or “would” occur. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including that the Company will successfully complete the acquisition and installation of an aggregate of 5,000 additional Rigs and the timing of delivery and installation of the 5,000 additional 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 Company will not complete the acquisition of the 5,000 additional Rigs and the risk that the 5,000 additional Rigs will not be successfully delivered and deployed as anticipated by management. Readers are cautioned not to place undue reliance on forward-looking statements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. 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 forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. 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.