HashChain Technology
Announces Intent to Spin off
NODE40, its
Blockchain Technology
Business into a Stand-Alone Public
Company
* Spin-off of NODE 40 expected to
be completed no
later than the fourth quarter of 2018
* HashChain Technology will
continue
as
the cryptocurrency
mining business
* NODE40 will become an
exclusive blockchain technology company
* Shareholders
on
record will be
distributed on a pro rata basis one NODE40 share
for every
one HashChain share held
VANCOUVER, BC -- July 3, 2018 --
InvestorsHub NewsWire -- HashChain Technology
Inc. (TSXV:
KASH; OTCQB: HSSHF)
("HashChain"
or the "Company") today
announced that
its Board of Directors has unanimously approved a plan
to separate the Company into two
independent publicly traded companies: one business focused on
cryptocurrency mining (HashChain)
and the other on cryptocurrency accounting and tax compliance
software, including other disruptive blockchain
technology
solutions (NODE40). Creating two stand-alone businesses will allow
each entity to maximize its respective growth opportunities and
drive long-term shareholder value.
"Cryptocurrency
mining and the blockchain
technology space
are evolving at an accelerated pace in their own distinct
directions," says Patrick Gray, CEO and President of
HashChain.
"With each business today facing unique market opportunities and
challenges, it has become clear that winning in both requires
separate strategies, focused investments, and dedicated
leadership."
The separation will
allow each company to focus on unique growth opportunities, better
direct capital allocation priorities and rapidly pursue independent
strategic and corporate development agendas.
NODE40's
ambition is to be the leading supplier
of cryptocurrency accounting and tax compliance
solutions. Its flagship
product, Balance,
along with its
suite of proprietary accounting tools, was built to live in the
evolving landscape of cryptocurrency regulation and government
oversight. Balance is a
best-in-class
blockchain
product
that
provides
a high value and user-friendly experience for its customers.
In
parallel, NODE40 intends to continue as the leading
masternode
service-hosting
provider for the Dash network and to pursue additional alt
coin masternode
hosting where
financially accretive.
Through to
completion of the spin-off and beyond, NODE40 will continue to
aggressively build enterprise-grade functionality in
Balance,
and collaborate with leading strategic partners to scale
rapidly.
George E. Kveton,
Chief Commercial Officer and blockchain technology business
responsible, will become President and Chief
Executive Officer of NODE40 upon completion of the transaction. Mr.
Kveton has over 20 years experience as an international corporate
development executive.
"Mr.
Kveton's
proven track record
with fast-moving consumer goods, emerging markets, start-ups and
regulated industries, ideally places him to steward innovation and
lead profitable growth at NODE40. The Board and I are confident he
is the right choice, at the right time," said Mr. Gray.
The
transaction is intended to take the form of a tax-free distribution
to HashChain
shareholders.
The expected stock distribution ratio will be confirmed
at a
future date. HashChain
expects to
complete the spin-off sometime in the fourth quarter 2018.
Completion of the
transaction is subject to certain customary conditions,
including stock exchange, court and
shareholder approvals.
About HashChain
Technology Inc.
HashChain
is
a blockchain
company,
and the first publicly traded (TSXV:
KASH; OTCQB: HSSHF) Canadian
cryptocurrency mining company to file a final prospectus supporting
highly scalable and flexible mining operations across all major
cryptocurrencies. HashChain
taps
low-cost North American power, cool climate and high-speed
Internet: the trifecta most critical to mining success, to create a
competitive position for maximizing the number of mining
'wins.' HashChain currently operates 100 DASH
mining Rigs and 3,395 Bitcoin Rigs with an additional 6,000 to be
deployed upon successful completion of its recently announced
acquisitions. Once
all Rigs are operational HashChain
will
be consuming approximately 14 megawatts of power.
HashChain
also
acquired two Dash Masternodes,
which requires a collateral investment of 1,000 DASH coins for
each Masternode.
NODE40
presently
belongs to the HashChain
group
of companies. Its lead product
Balance,
the software-as-a-Service allows cryptocurrency users to generate a
fiat denomination ledger by analyzing the blockchain to report capital gains and
losses. Users directly upload their wallets or accounts on
Coinbase, GDAX, Gemini and
Bittrex
exchanges, where
the software automatically details the information on a worksheet
that can be shared with a CPA to file with other tax items.
Balance supports cross-wallet
transactions, as well as FIFO and LIFO accounting
methods. NODE40's other service, NODE40
Hosting, is the leading
masternode
server-hosting
provider for the Dash network.
HashChain
Mining
is a wholly owned subsidiary of HashChain
Technology
Inc. based out of Albany, New York, and an office in Vancouver,
British Columbia.
On
Behalf of the Board,
Patrick
Gray
CEO
& Director
For
Further information please contact:
HashChain
Technology
Inc.
Larry
Heinzlmeir
Vice
President, Marketing & Communications
Larry@HashChain.ca
604-537-8676
Neither
the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
Cautionary Note
Regarding Forward Looking Statements: Certain disclosure in this
release, including statements regarding the proposed Spin-off transaction
and its anticipated benefits
and deployment of
additional rigs, and expectations
regarding future operations may constitute forward-looking
statements. In making the forward-looking statements in this
release, the Company has applied certain factors and assumptions
that are based on the Company's current beliefs as well as
assumptions made by and information currently available to the
Company, including that the Company will
receive all required approvals for the Spin-off transaction,
including stock exchange, court and
shareholder approvals, that the Spin-off transaction
will complete when anticipated by
management and will have the benefits anticipated
by management, and that the Company will successfully
complete the acquisition and
deployment of the
additional rigs. Although the Company
considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect, and the
forward-looking statements in this release are subject to numerous
risks, uncertainties and other factors that may cause future
results to differ materially from those expressed or implied in
such forward-looking statements, including that that the
Company will not receive required approvals for
the Spin-off transaction, including stock exchange, court and
shareholder approvals, or that such approvals will be
delayed, that the Spin-off transaction
will not complete or, if completed, will be completed later than
anticipated by management or will not have the benefits
anticipated by management, and that the Company will not be able to
successfully complete the acquisition or
deployment of the
additional rigs. There can be no assurance that
the Spin-off transaction will complete. Readers are cautioned not to
place undue reliance on forward-looking statements. The Company
does not intend, and expressly disclaims any 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 law.
