HyperBlock Secures US$3.5M Financing for Next Gen Bitmain Servers
Toronto, Ontario--(Newsfile Corp. - January 21, 2020) - HyperBlock Inc. ("HyperBlock" or the "Company") (CSE: HYPR), through its wholly-owned subsidiary, Hyperblock LLC, has secured up to US $3,540,000 in financing as part of a three-year agreement that will allow the Company to invest in additional next generation Bitmain servers that are expected to increase HyperBlock's maximum hashrate capacity.
The lender under the financing agreement is Bank of Montana and Bonner Property Development, LLC - the owner of the Company's US datacenter facility - has provided a guarantee in respect of the Company's obligations. The loan is to be repaid over three years at approximately 15 per cent interest and, as consideration for the guarantee provided by Bonner Property Development, LLC, The Company will issue warrants equal to 15 per cent of the maximum principal amount of the loan divided by the warrant exercise price. The issuance of the warrants is conditional on the revocation of the cease trade orders in respect of the Company's securities and the resumption of trading of its common shares. The loan is effective as of January 9, 2020 and demonstrates ongoing support for HyperBlock from local Montana business community leaders.
HyperBlock confirmed that it intends to use the proceeds to place a new order for additional next generation Bitmain Bitcoin servers, which are scheduled for February 2020 delivery.
The Company believes its ability to secure financing despite the ongoing volatility in crypocurrency mining, is attributable to the Company's strong operating fundamentals and strong business partner relationships. In 2019, HyperBlock began 16nm server replacement, and the Company accepted delivery of two next generation Bitmain server orders.
Update on 2019 Quarterly Financials and CTO Status
The Company expects to soon release its Q1, Q2 and Q3 2019 financials, management's discussion and analysis and related officer certifications, together with any other filings required to bring its continuous disclosure record current. As previously announced, the Company will apply to have the cease trade orders in respect of its shares revoked. However, revocation is not expected to occur until the Company's outstanding continuous disclosure filings have been made and an order revoking the cease trade orders is issued and there can be no assurance that the cease trade orders will be revoked. The Company will continue to provide further updates when available.
About HyperBlock Inc.
HyperBlock is a leading publicly traded crypto-asset enterprise. The Company operates one of North America's most efficient cryptocurrency datacenters and provides complementary product offerings, which include cryptocurrency mining, Mining-as-a-Service (MAAS), server hosting and server hardware sales, depending on market conditions. HyperBlock is committed to operating as sustainably as possible, purchasing electricity from a hydro-electric source for its US datacenter - and employing advanced recycling technology to minimize environmental impact. Learn more at www.hyperblock.co.
Cautionary Note Regarding Forward Looking Information and Future-Orientated Financial Information
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "plan", "believe", "may", "should", "anticipate", "expect", "intend", "forecast" and similar expressions.
The forward-looking information contained in this press release includes, but is not limited to, statements related to: the deployment of new servers, the profitability and growth of the Company as a result of server deployment, the future status of the Company's current power contracts, the anticipated filing of its outstanding financial statements, management's discussion and analysis and related officer certifications, together with any other filings required to bring its continuous disclosure record current . These forward-looking statements contained herein are made as of the date of this press release and are based on assumptions and estimates of management, which management considers reasonable, based on information available on the date hereof. Such assumptions may be incorrect.
Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors, among other things, include: general economic, market and business conditions will be consistent with expectations, fluctuations in general macroeconomic conditions; fluctuations in securities markets; risks relating to the Company's ability to execute its business strategy and the benefits realizable therefrom, the ability to retain personnel to execute the Company's business plans and strategies; the ability to retain auditors to perform an audit of the Company's financial statements; the presence of laws and regulations that may impose restrictions on the ability of the Company to operate its business, including securities laws applicable to the Company; the speculative nature of cryptocurrency mining and blockchain operations including but not limited to cryptocurrency prices and mining difficulties; and those factors described under the heading "Risks Factors" in the Company's listing statement dated July 10, 2018 and the risks described in the Company's Management's Discussion & Analysis for the year ended December 31, 2018 dated December 12, 2019, each of which is available on the Company's issuer profile on SEDAR. There may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/51696