Cryptologic Agrees to Sell 30 Megawatt Bitcoin Mining Facility
CRYPTOLOGIC AGREES TO SELL 30 MEGAWATT BITCOIN MINING FACILITY
TORONTO, Ontario, March 30, 2020 – Cryptologic Corp. (“ Cryptologic” or the “ Company”)
(CSE:CRY) announced today it has signed a definitive agreement (the “ Agreement”) to sell all
the shares of its wholly-owned subsidiary 9376-9974 Quebec Inc. (“9376”), which holds the rights
to a 30 megawatt (“MW”) dedicated cryptocurrency mining operation located in Lachute, Quebec,
to HIVE Blockchain Technologies Ltd. (“Hive”). 9376’s material assets include 30 MW of electrical
and HVAC infrastructure and approximately 14,000 Bitmain S9 miners.
Pursuant to the Agreement, Hive will issue 15,000,000 common shares (“ Hive Shares”) to the
Company at a deemed price of C$0.20 per Hive Share and pay the Comp any C$1,000,000 in
cash, subject to a working capital adjustment. The transaction has been approved by the board
of directors and the shareholders of Cryptologic and the board of directors of Hive, and remains
subject to customary closing conditions, including receipt of regulatory approvals. The transaction
is expected to close on the date that is the later of: (a) Friday April 3, 2020; and (b) the date that
is two business days after the date that the TSX Venture Exchange provides conditional approval
of the transaction.
For information or interview please contact:
Jordan Greenberg Chief Financial Officer (647) 715-3707
About Cryptologic Corp.
Cryptologic Corp. is currently a cryptocurrency mining company that is focused on divesting its
crypto mining assets and exploring acquisition opportunities in sectors outside of cryptocurrency
mining.
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. is a growth oriented, TSX.V-listed company building a bridge
from the blockchain sector to traditional capital markets. HIVE owns state -of-the-art GPU-based
digital currency mining facilities in Iceland and Sweden, which produce newly minted digital
currencies like Ethereum continuously. Hive’s deployments provide shareholders with exposure
to the operating margins of digital currency mining as well as a growing portfolio of crypto-coins.
Cautionary Note Regarding Forward-Looking Information
Certain statements in this press release, including statements with respect to the expected closing
date of the transaction, the amount of the consideration under the Agreement, obtaining the
necessary approvals for closing of the transaction and the business prospects of Hive contain
forward-looking information which can be identified by the use of forward looking terminology such
as "believes", "expects", "may", "desires", "will", "should", "projects", "estimates", "contemplates",
"anticipates", "intends", or any negative such as "does not believe" or other variations thereof or
comparable terminology. No assurance can be given that potential future results or circumstances
described in the forward-looking statements will be achieved or will occur. By their nature, these
forward-looking statements necessarily involve risks and uncertainties, including the risk that the
Company or Hive does not proceed with the transaction described herein, on the timing described
herein or at all, the risk that the consideration under the Agreement is reduced at or prior to closing
of the transaction, the risk that the Com pany or Hive is unable to obtain any of the approvals
necessary to complete the transaction and other risks and uncertainties discussed herein, that
could cause actual results to significantly differ from those contemplated by these forward-looking
statements. Such statements reflect the view of the Company with respect to future events, and
are based on information currently available to the Company and on assumptions, which it
considers reasonable. Management cautions readers that the assumptions relative to the future
events, several of which are beyond management's control, could prove to be incorrect, given
that they are subject to certain risk and uncertainties, and that actual results may differ materially
from those projected. Management disclaims an y intention or obligation to update or revise any
forward-looking statements whether as a result of new information, future events or otherwise,
except as required by applicable securities laws. The reader is cautioned not to place undue
reliance on forwar d-looking information. The Canadian Securities Exchange has not reviewed,
approved or disapproved the content of this news release.