Vogogo Announces the Closing of the Acquisition of the 828 Cryptocurrency Mining Assets

Vogogo (CSE:VOGO) has announced that it has closed the previously announced acquisition of 828 L.P.

As quoted in the press release:

In addition to the 14,000 Antminer S9 cryptocurrency mining machines, plus supporting infrastructure, all newly installed in a state of the art facility near Montreal, Quebec, Vogogo was also able to negotiate with 828 L.P. (the “Vendor”) the inclusion of certain additional supporting infrastructure beyond what is required to operate the 14,000 mining machines, at no additional cost to the Company. Vogogo acquired additional HVAC and electrical equipment, which, once installed and placed into service in the short term, will support cryptocurrency mining for an additional 6 megawatts of power at the facility.  The added capacity will allow the Company to add 4,000 more mining machines, either mining for its own account or on a co-location basis for other miners.

As of the closing, approximately 10,500 mining machines are fully operational, with installation of the remaining mining machines continuing and expected to be completed by mid-July. Concurrent with closing, the Company entered into a lease agreement for the facility, which will have access to 30 megawatts of power for cryptocurrency mining, of which approximately 27 megawatts is used for mining and the balance for supporting HVAC and electrical systems.  Vogogo also received confirmation from the Vendor that Hydro Quebec has confirmed the hydro power for the 828 Acquisition forms part of the 120 MW block of electricity that has already been allocated and approved for blockchain use in the Province of Quebec.

The total purchase price of $46 million was satisfied as to $36 million in cash plus a $10 million promissory note. Vogogo completed a convertible debenture financing on June 21, 2018 in the amount of $34.5 million, the net proceeds of which, along with cash on hand, were used to finance the cash portion of the purchase price.  The promissory note bears interest at 8% per annum, for a two year term, with monthly interest payments during the term of the note.   Principal is repayable as to $5 million on the first anniversary date of the loan and as to $5 million at maturity. The promissory note is secured by the mining machines and other assets acquired in the transaction.

Click here to read the full press release.