TORONTO, April 18, 2022 /CNW/ – TAAL Distributed Information Technologies Inc. (CSE: TAAL) (FWB: 9SQ1) (OTC: TAALF) (“TAAL” or the “Company”), a vertically integrated blockchain infrastructure and service provider for enterprise, announces the completion of the sale and partnership plans for its New Brunswick facility.
CHIEF FUELS TRANSACTION COMPLETED
Further to the announcement on April 5, 2022, TAAL is pleased to announce it has entered into a definitive share purchase agreement (the “Agreement”) and completed the sale of the shares of Chief Fuels Inc. (“Chief Fuels”) to an established professional property fund (the “Purchaser”) for an aggregate cash purchase price of US$24 million (the “Purchase Price”) and the Purchaser has committed to expending up to US$20 million for capital purchases, to develop the 60,000 sq/ft facility in New Brunswick into a dedicated bitcoin mining and transaction processing operation. TAAL will oversee and coordinate these activities. Upon closing, the deposit previously advanced by the Purchaser was credited towards the Purchase Price and the Purchaser made an additional payment of US$7 million. The Purchase Price balance is required to be paid in the fourth quarter of 2022. Pursuant to the Agreement, the parties have also agreed to enter a long-term arrangement where TAAL will be the single permanent tenant at this mining facility, commencing in 2023.
This partnership will support the capital requirements necessary for developing the New Brunswick facility to be a 50MW mining and transaction processing data centre adding up to 1.4 Exahash to TAAL’s block processing capabilities once complete. Additionally, the agreement provides immediate cash to continue supporting TAAL’s equipment commitments and growth strategy for 2022 and beyond.
“We are delighted to partner and work closely with such an established professional property fund to support TAAL and the development of this Bitcoin mining facility. TAAL’s business focus is on building the tools and services that help accelerate the adoption of blockchain technology. Selling this facility puts capital back on the balance sheet, accelerates the infrastructure build program at New Brunswick and secures the facility exclusive to our hashing operation requirements for the long-term.” Richard Baker, CEO.
For more information, please visit www.taal.com.
ABOUT TAAL DISTRIBUTED INFORMATION TECHNOLOGIES INC.
TAAL Distributed Information Technologies Inc. delivers value-added blockchain services, providing professional-grade, highly scalable blockchain infrastructure and transactional platforms to support businesses building solutions and applications on the BSV platform, and developing, operating, and managing distributed computing systems for enterprise users. BitcoinSV Blockchain is the world’s largest public blockchain by all major utility metrics, data storage, daily transaction volume, scaling ability, and average block size.
For more information please visit – www.taal.com/investors
The CSE, nor its Regulation Services Provider, accepts no responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain statements included in this news release constitute “forward-looking information” as defined under applicable Canadian securities legislation. The words “will”, “intends”, “expects” and similar expressions are intended to identify forward-looking information, although not all forward-looking information will contain these identifying words. Specific forward-looking information contained in this news release includes but is not limited to statements regarding: the anticipated timing of the payment of the balance of the Purchase Price, the entering into the of a tenancy arrangement, development of the New Brunswick facility and the North American growth plan. These statements are based on factors and assumptions related to historical trends, current conditions and expected future developments. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. TAAL cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from expectations. Material risk factors include delays in equipment deliver, expected operation, network conditions in the future and other risks set out in TAAL’s Annual Information Form for the financial year ended December 31, 2021 under the heading Risk Factors and elsewhere in TAAL’s continuous disclosure filings available on SEDAR at www.sedar.com. Given these risks, undue reliance should not be placed on the forward-looking information contained herein. Other than as required by law, TAAL undertakes no obligation to update any forward-looking information to reflect new information, subsequent or otherwise.
SOURCE Taal Distributed Information Technologies Inc.
For further information: Richard Baker, Chief Executive Officer, [email protected]