AI Artificial Intelligence Ventures Inc (ESIFF)

[nlightn]

Block One to acquire 90% of TG12 Ventures



2017-11-30 02:53 ET - News Release


Mr. David Berg reports

BLOCK ONE CAPITAL INC. AGREES TO ACQUIRE UP TO 90% OF CRYPTOCURRENCY MINING OPERATION

Block One Capital Inc. has signed a binding term sheet to acquire 90 per cent of the equity of TG12 Ventures Inc., a private company engaged in cryptocurrency mining. Under the binding term sheet, the company is to invest up to $2.3-million (U.S.) to acquire up to 90 per cent of TG12. The investment is to be made over a 12-month period and will be based on various milestones. The first investment is scheduled to be made immediately, pursuant to which the company will acquire a 40-per-cent interest in TG12 for a $250,000 (U.S.) investment.

TG12 has entered into a purchase agreement to acquire 1,000 S9 Antminer cryptocurrency miners. The S9 Antminers are manufactured by Bitmain, one the world's most recognized bitcoin/cryptocurrency companies. The first batch of S9 Antminers is scheduled to be shipped and delivered in January, 2018, and be operable in February, 2018. Pursuant to the purchase agreement, the full 1,000 units are to be delivered and be operable in February, 2018. The S9s are planned to operate at a co-location facility located in Montreal, Que., Canada, where the all-in cost of operating the miners, inclusive of electricity, rent, cooling, general rig maintenance and management, is estimated to be about 10 U.S. cents per kilowatt-hour.

Based on TG12's financial forecasting, current conservative bitcoin price estimate of $8,000 (U.S.) and the 1,000 miners being fully operable, the estimated revenue per year is $7.8-million (U.S.). As the price of bitcoin increases, their turn on investment of the miners should become even more profitable.

"We have spent the past several months evaluating investments and find the emerging opportunities in the blockchain and cryptocurrency arena to be compelling. With the recent market price of about $10,000 (U.S.) per bitcoin, we are excited to be investing in the extremely profitable cryptomining business. While we remain confident of the long-term viability of the business model, we are not solely reliant on bitcoin, the TG12 mining operation has the flexibility to switch between cryptocurrencies to focus computing resources on emerging and newly profitable coins as they arise," said David Berg, chief executive officer of Block One Capital.

The company has granted 500,000 options to consultants, management and directors at 70 cents for three years. The options are subject to TSX Venture Exchange approval.

We seek Safe Harbor.

© 2017 Canjex Publishing Ltd. All rights reserved.