TORONTO, Dec. 20, 2021 /CNW/ - CryptoStar Corp. (TSXV:
CSTR) (OTCQB: CSTXF) ("CryptoStar" or the "Company"),
a cryptocurrency mining and data centre operator, provides an
update on business operations and recent developments with respect
to its power supply agreement ("PSA") for up to 30 megawatts
(MW) with 611890 Alberta Inc. DBA Avila Energy (the "Alberta
Partner") and its data centres in Alberta, Canada.
On December 1, 2021, the Company
filed a Notice of Action and Notice of Motion against the Alberta
Partner et al. with the Ontario Superior Court of Justice due to
the Alberta Partner's non-compliance with terms of the PSA. On
December 8, 2021, the parties agreed
to adjourn the Notice of Motion on a returnable basis, in an
attempt to resolve the outstanding issues.
The Company and the Alberta Partner are continuing to work to
resolve the issues however the Company anticipates delays to the
deployment dates for the Company's Equipment Hosting Agreements
("EHAs") for 5 MWs announced on August 31, 2021, 10 MWs announced on September 2, 2021 and 10 MWs announced on
September 24, 2021. The impact of the
delays will be a deferral of the associated revenues and may
include financial credits as set out in the EHAs and temporary
reductions in the Company's self-mining Hashrate and associated
revenues in the event that equipment is relocated. The Company will
provide further updates of any material changes.
About CryptoStar Corp.:
CryptoStar has cryptocurrency mining operations with data
centres located in the U.S.A. and
Canada. CryptoStar is currently
dedicated to becoming one of the lowest cost cryptocurrency
producers in North America and a
major supplier of GPU and ASIC miners worldwide.
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this press release.
Forward-Looking Statements
This news release contains forward-looking statements.
Forward-looking statements can be identified by the use of words
such as, "expects", "is expected", "anticipates", "intends",
"believes", or variations of such words and phrases or state that
certain actions, events or results "may" or "will" be taken, occur
or be achieved. Forward-looking statements include those relating
to CryptoStar's expectation for and the timing surrounding its
power expansion in Alberta,
Canada, the deployment dates, delays and revenues associated
with the Equipment Hosting Agreements, the potential for temporary
reductions in CryptoStar's self-mining Hashrate and associated
revenues in the event that equipment is relocated, and CryptoStar's
plans of becoming one of the lowest cost cryptocurrency producers
in North America and a major
supplier of GPU and ASIC miners worldwide. Forward-looking
statements are not a guarantee of future performance and are based
upon a number of estimates and assumptions of management in light
of management's experience and perception of trends, current
conditions and expected developments, as well as other factors that
management believes to be relevant and reasonable in the
circumstances. Actual results, performance or achievement could
differ materially from that expressed in, or implied by, any
forward-looking statements in this press release, and, accordingly,
you should not place undue reliance on any such forward-looking
statements and they are not guarantees of future results.
Forward-looking statements involve significant risks, assumptions,
uncertainties and other factors that may cause actual future
results or anticipated events to differ materially from those
expressed or implied in any forward-looking statements. Except as
required by law, CryptoStar undertakes no obligation to publicly
update any forward-looking statements, whether as a result of new
information, future events or otherwise.
SOURCE CryptoStar Corp.