UnitedCorp Announces Completion of a Transaction for CD$2M in Debt Reduction and a Lease Agreement for 5,000 Computer Mining Rigs
Miami, Florida--(Newsfile Corp. - February 12, 2020) - Miami-based United American Corp (OTC Pink: UAMA) ("UnitedCorp"), a digital and telecommunications company, announced today that it has completed a transaction with its largest hosting client to eliminate its CD$1.94M debt with the client through a form of debt forgiveness. The transaction further provides immediate access to the client's 5,000 computer mining rigs under a lease agreement at CD$ 1 per month. This replaces the original hosting service agreement signed between the parties in March 2018 and subsequently amended in June 2018.
Under the agreement, no new shares will be issued and the debt forgiveness will be reflected as a CD$ 2 million increase in UnitedCorp's net equity and recorded as a special gain for Q1 2020.
The transaction reflects changes management is implementing to UnitedCorp's evolving business model through its continuous improvement process, which responds to rapid changes in today's digital economy as well as to the information technology, telecommunications and green sustainability industries.
The company will make further announcements and provide additional details on Thursday, February 13.
"We are very fortunate to have built such a tremendous relationship with our client over the past two years. Their confidence and support has allowed us to develop and implement our highly innovative technology," commented Benoit Laliberté, CEO of UnitedCorp. He further added, "This transaction will enable us to continue the transformation of our company in order to take advantage of the evolving marketplace and is a key element that will contribute to the prosperity of our respective businesses in the long term."
About United American Corp
Established in 1992, United American Corp is a Florida-based development and management company focusing on telecommunications and information technologies. The company currently holds the rights to manage a portfolio of patents and proprietary technology in telecommunications, social media and Blockchain technology, and owns and operates the Data Center Domes which are amongst the world's most efficient and green data centers, and are designed to provide heat for agricultural operations using computer equipment in naturally cooled data centers where efficiency and low-cost operations are a priority.
This news release contains forward-looking statements that are subject to various risks and uncertainties. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors that may be beyond the Company's control. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made, and the Company assumes no obligation to update forward-looking statements should circumstances in management's expectations or opinions change.
United American Corp
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