Hydro66 Announces Completion of Initial Advance Under Convertible Loan Agreement
Toronto, Ontario--(Newsfile Corp. - December 27, 2018) - Hydro66 Holdings Corp. (the "Company" or "Hydro66") (CSE: SIX) is pleased to announce that today it has received the initial advances of USD$1,050,000 and CDN$300,000 pursuant to a secured convertible loan agreement with certain shareholders and directors of the Company (the "Loan Agreement"), as previously announced on December 19, 2018.
In connection with the initial advances the Company issued secured convertible promissory notes in favour of each lender (the "Notes"). The maturity date of the principal amount, interest and any fees under the Notes is seven years from the date of the initial advances and the rate of interest is 10% per annum. The interest for the initial two (2) years under the Notes shall not be payable until such time as the principal is repaid in full. For further details on the terms of the Notes please see the Company's news release dated December 19, 2018.
The Notes issued pursuant to the transaction and any common shares issued on conversion of the Notes will be subject to a statutory hold period in Canada of four months and one day following the issuance of the Notes in accordance with applicable securities laws. Additional resale restriction may be applicable under the laws of other jurisdictions.
Hydro66 owns and operates a colocation data center in Sweden specializing in Enterprise and HPC hosting. The Company hosts third party IT infrastructure, utilizing 100% green power, at some of the EU's lowest power prices and within an ISO27001 accredited facility. The Company is continuing to expand its footprint, with plenty room for ongoing expansion at the existing location. Hydro66 is uniquely positioned to capitalize on opportunities in blockchain infrastructure as well as the traditional Enterprise colocation data center market. The Company provides truly green power at a leading price, purpose-built space and cooling, telecoms, IT support services and 24/7 physical security in their facility in Boden, Sweden. Revenues are generated from colocation data center services to hashrate service companies and traditional Enterprise companies as well as digital currency self-mining (GPU and/or ASIC). Combining the above provides steady, diversified revenue with strong margins. A flexible and rapid build-out schedule will allow Hydro66 to rebalance between business lines as market conditions evolve. Hydro66 is run by a team with decades of technical expertise in data center facility design, construction, operation, sales and marketing and more recently blockchain infrastructure and hashrate services. Please find us on Facebook, Twitter, LinkedIn, Google+ and Instagram.
For more information please visit: www.hydro66.com
FOR MORE INFORMATION, PLEASE CONTACT:
Chief Commercial Officer of Hydro66 UK Limited
Tel: (+44) 7789 915 147
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This news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.
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