Acquisition Highlights Mining Diversification and Growth
Vancouver, B.C., Oct. 31, 2024 (GLOBE NEWSWIRE) -- CryptoBlox Technologies Inc. (the "Company” or "CryptoBlox”) (CSE: BLOX) is pleased to announce that it has entered into an arm's length asset purchase agreement ("Agreement”) with 1001038815 Ontario Inc. (the "Vendor”) on October 30, 2024 to purchase five (5) IceRiver KS3 Kaspa mining units (the "Miners”). Completion of the Agreement is conditional upon, among other things, approval of the Canadian Securities Exchange and the Company and the Vendor entering into a management services agreement (the "MSA”), the form of which has been settled, to provide for the set up and ongoing maintenance, hosting and operation of the Miners by the Vendor.
The MSA provides for competitive electricity rate of USD $0.041 per kilowatt-hour, which is expected to allow for efficient mining of Kaspa with low overhead costs. The total consideration under the Agreement for the Miners and the MSA is 11,000,000 common shares of the Company, having a deemed value of $1,100,0002. A finder's fee of 550,000 common shares will be payable upon closing.
By acquiring and deploying the Miners, CryptoBlox hopes expand its digital asset mining operations beyond Bitcoin, leveraging Kaspa's distinctive blockDAG technology. Kaspa's technology enables rapid transaction confirmation and high throughput, which makes it an attractive option for miners.
The Company also announces that it has granted 5 million restricted share units (the "RSUs”) to key management and consultants, to reward such individuals' ongoing commitment to the Company. Such RSUs will vest as follows: 25% after four (4) months, 25% after eight (8) months, 25% after twelve (12) months, and 25% after sixteen (16) months from the date of grant. The grant of 2,000,000 of the RSUs (the "Related Party Grant”) to a director and officer of the Company was considered a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), but was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101, given neither the fair market value of the securities issued nor the consideration provided therefor exceeded 25% of the Company's market capitalization.
Akshay Sood, CEO of CryptoBlox, commented:
"We are thrilled to enter the Kaspa mining market, as this represents an important step in our commitment to diversification.”
"This is a significant achievement for the Company, given we will acquire a turn key operation, which is expected to immediately generate cash flows, while preserving cash.”
"We hope to rapidly continue to build out our diversified Blockchain Ecosystem and continue to build value for our shareholders.”
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1 CAD $0.055 per kilowatt-hour
2 CAD $0.10 per common share
On behalf of the Company,
Akshay Sood,
Chief Executive Officer
About CryptoBlox Technologies Inc.
CryptoBlox Technologies Inc. ("CryptoBlox”) is a blockchain technology infrastructure company focusing on building out its diversified Blockchain Ecosystem Strategy that consists of Digital Asset Mining & Infrastructure, Mining Products & Technology, and Structured Blockchain Products & Services.
For further information about the Company, please visit www.cryptoblox.ca or call 236-259-0279.
Forward-Looking Statements
The information in this news release includes certain information and statements about management's view of future events, expectations, plans, and prospects that constitute forward-looking statements. These statements are based upon assumptions that are subject to risks and uncertainties. Forward- looking statements in this news release include, but are not limited to, statements respecting: the MSA and the performance thereof; the Agreement and the completion thereof; the outlook on Kaspa; the expectation that the Miners will be operated efficiently; expectation that the Miners will generate cash flow immediately and the Company's commitment to diversification and building value for shareholders. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements, or otherwise.
The CSE (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.
