HashChain Technology Announces Intent to Spin off NODE40, its Blockchain Technology Business into a Stand-Alone Public Company
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
-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
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,
CEO & Director
For Further information please contact:
HashChain Technology Inc.
Vice President, Marketing & Communications
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.