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Vancouver, British Columbia–(Newsfile Corp. – April 21, 2021) – Skychain Technologies Inc. (TSXV: SCT) (the “Company”) is pleased to announce signing of a binding term sheet for a $4 million financing to construct and operate a 12 MW crypto hosting facility in Birtle, Manitoba (the “Project”). The financing consists of a convertible note of $2 million (the “Note”) and an equity private placement of $2 million (the “Private Placement”). The Note bears an interest rate of 1% and is convertible into shares, with a conversion price of $0.85 per share and maturity of four years. The Private Placement consists of 2,631,579 units at a price of $0.76 per unit. Each unit consists of one common share and one share purchase warrant, and each warrant entitles the holder to purchase an additional common share of the Company at a price of $1.22 per share for an exercise term of three years.
Financing for the Project is provided by The9 Limited: NCTY (NASDAQ), a diversified, high-tech internet company based in China and listed on Nasdaq since 2004. Under the agreement, The9 may use up to a maximum of 8 MW of operating capacity for its own miners at the Project with a fixed-price hosting fee over a term of 10 years.
“The9 is an industry leader in crypto mining services,” said Bill Zhang, SkyChain’s President and CEO. “We look forward to working with them as a strategic partner, providing the Birtle Project with a long-term, high-performing and reliable mining operation.”
The Company expects to begin construction activities in the coming months with energization by the end of this year. “With the lower power costs in Manitoba and a secure customer base from reliable partners such as The9, this commitment is expected to contribute significantly to the Company’s future profitability and growth,” said Zhang.
About Skychain Technologies INC
Skychain Technologies is a Vancouver based company providing Blockchain Infrastructure services and power solutions. Our vision is to become a leading player in the crypto/data mining hosting by growing to 100Mw of crypto hosting capacity. To learn more, visit www.skychaintechnologiesinc.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Bill Zhang
President and CEO
Contact: 604-456-0608
info@skychaintechnologiesinc.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release.
Statements in this news release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. There are no assurances the company can fulfill such forward-looking statements and the company undertakes no obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing the company, some of which are beyond the company’s control.
NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES OR FOR DISSEMINATON INTO THE USA
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/81147
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