BlockchainK2, Corp. ticker: BITK in Canada company changing business into tech
Africa Hydrocarbons to complete financing in 10 days
2018-01-05 18:17 ET - News Release
Mr. Douglas Wu reports
AFRICA HYDROCARBONS PROVIDES UPDATE ON ITS PROPOSED CHANGE OF BUSINESS TO BECOME BLOCKCHAIN TECHNOLOGY COMPANY, WITH INITIAL FOCUS ON MINING CRYPTOCURRENCIES
Africa Hydrocarbons Inc. has provided an update on its previously announced change-of-business transaction pursuant to the policies of the TSX Venture Exchange, with the result that the company will become a blockchain technology company, listed on the exchange (see the company's Nov. 23, 2017, press release).
Further to that previous announcement, upon completion of the COB transaction, the company now plans to acquire no less than $1.6-million worth of cryptocurrency mining rigs and other equipment necessary to commence operations and mine bitcoin (algorithm SHA256), subject to larger acquisitions of equipment, should the company raise a larger amount of funds in connection with the COB transaction. The company executed a non-binding agreement on Oct. 25, 2017, with a cryptocurrency mining equipment supplier in connection with such order, and expects that it should receive the equipment within two months of making such order, which order will be made upon completion of the COB transaction, unless the exchange grants early approval to the company to make such equipment order.
The company has also made the determination to build its initial cryptocurrency mining facility at a third party data centre, located in the state of Georgia in the United States, a low-cost electricity jurisdiction.
Financing
With respect to the company's previously announced non-brokered private placement of subscription receipts that is being completed concurrently with the COB transaction (see the company's Nov. 24, 2017, press release), the company has received incredible interest and expects to close such financing within the next seven to 10 days, if not sooner.
Annual general and special meeting of shareholders
The company is also pleased to announce that all resolutions presented at the annual general and special meeting of shareholders of the company on Jan. 4, 2018, were approved, including the resolution to change the name of the company to BlockchainK2 Corp. The company has reserved the stock symbol BITK in connection with such proposed name change. The name and stock symbol change will be completed in connection with the COB transaction and is subject to applicable exchange and other regulatory approvals.
Board of directors and management
As previously announced, current directors, Douglas Wu, Sergei Stetsenko and Andri Stytsenko, will remain on the board of directors upon completion of the COB transaction. Biographies for Mr. Wu and Mr. Stetsenko are set forth in the company's Nov. 23, 2017, press release. As for Mr. Stytsenko, he is a dual citizen of Canada and the Ukraine, and has a degree in petroleum engineering, with over 28 years in the industry, including six years at Halliburton in Western Canada. He is also an early adopter of cryptocurrency mining and has been involved with accessing suitable data centre locations with economic energy sources, both in Western Canada and Eastern Europe.
General
The COB transaction is conditional upon, among other things:
The company preparing a filing statement in accordance with the rules of the exchange, outlining the terms of the COB transaction and the resulting business of the company;
Receipt of all requisite regulatory approvals, including the approval of the exchange, and any third party approvals and authorizations (if applicable);
The company obtaining the requisite shareholder approvals for the COB transaction (as applicable);
The company completing a private placement financing for minimum gross proceeds of not less than $2-million;
The company meeting the applicable initial listing requirements of the exchange as a technology issuer (pursuant to Policy 2.1 (Initial Listing Requirements of the Exchange)), including, without limitation, the public float requirements.
Trading in the common shares of the company has been halted in accordance with the policies of the exchange and will remain halted until such time as all required documentation has been filed with and accepted by the exchange and permission to resume trading has been obtained from the exchange. The company will then operate within the technology sector. Since: (i) the common shares of the company are listed on the NEX market of the exchange, (ii) the proposed COB transaction does not constitute a related-party transaction under the policies of the exchange, (iii) the company is not, and does not expect to be, subject to a cease trade order upon completion of the COB transaction, and (iv) shareholder approval is not required to complete the COB transaction under applicable corporate and securities laws, the company does not expect to be required to seek shareholder approval for the COB transaction.
The company will continue to issue additional press releases related to the COB transaction, the private placement, sponsorship and other material information as it becomes available.
We seek Safe Harbor.
