Hydro66 Signs Definitive Agreement for Sale of Data Centre
Toronto, Ontario--(Newsfile Corp. - February 24, 2021) - Hydro66 Holdings Corp. (CSE: SIX) (the "Company") is pleased to announce that, further to its press releases dated January 7 and February 19, 2021, the Company and its wholly-owned subsidiary, Hydro66 Canada Ltd. ("Hydro66 Canada") have entered into a definitive share purchase and contribution agreement (the "Share Purchase and Contribution Agreement") with Northern Data AG ("Northern Data") providing for the sale of the shares of Hydro66 UK Limited ("Hydro66 UK"), which operated its data center in Sweden through Hydro66 UK's wholly-owned subsidiaries, Hydro66 Services AB, Hydro66 Svenska AB and Hydro66 Property Services AB.
Pursuant to the terms of the Share Purchase and Contribution Agreement, Hydro66 Canada will receive 338,273 Northern Data shares and €4,000,000 cash, subject to adjustment based upon the consolidated balance sheet of Hydro66 UK as at 28 February, which is expected to be determined on or before June 30, in connection with preparation of the audited financial statements of the Company. €2,000,000 of the cash component of the purchase price will be held in escrow to be available to satisfy warranty and indemnity claims, if any, with €1,000,000 of the escrowed funds to be released 12 months following the closing of the transaction and the balance of the escrowed funds to be released 24 months following the date of closing. The shares of Northern Data to be received by the Company in connection with the transaction will be subject to resale restrictions for a period of 24 months following the completion of the transaction. Closing of the transaction is anticipated to be completed on or about March 1, 2021.
The Company will retain its Megamining Limited subsidiary and the employees of the Hydro66 UK and its subsidiaries will be transferred to Northern Data. Prior to closing, the Company intends to complete a restructuring to eliminate various intragroup debts in a tax efficient manner and, post-closing, collapse the Canadian holding company structure.
Hydro66 owns and operates an award-winning colocation data centre in Sweden specializing in High Performance Computing ("HPC") hosting. The Company hosts third party IT infrastructure, utilizing 100% green power, at amongst the EU's lowest power prices and within an ISO27001 accredited facility.
Hydro66 is uniquely positioned to capitalize on opportunities in blockchain infrastructure as well as the traditional Enterprise colocation data centre 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.
For more information please visit: www.hydro66.com
FOR MORE INFORMATION, PLEASE CONTACT:
Chief Commercial Officer
(+44) 7789 915 147
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