Hello Pal Announces Proposed Transaction to Acquire Interests in Dogecoin/Litecoin Mining Facility and Mining Assets and Private Placement to Raise up to C$5 Million by way of Subscription Receipts
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VANCOUVER, BC, March 8, 2021 /PRNewswire/ -- Hello Pal International Inc. ("Hello Pal" or the "Company") (CSE:HP) (Frankfurt:27H) (OTC:HLLPF), a provider of international live-streaming, social messaging and language learning mobile apps, is pleased to announce that it has entered into a letter of intent (the "LOI") with Shanghai Yitang Data Technology Co. Ltd. ("Yitang") to acquire:
(a) an initial 15% interest in a cryptocurrency mining facility (the "Mining Facility") located in North-West China to be dedicated to mining Dogecoin (DOGE) and Litecoin (LTC), with an option to increase such interest to 35%; and
(b) an initial 51% interest in a number of mining rigs also dedicated to mining Dogecoin and Litecoin (the "Mining Assets"), with an option to increase such interest to 100%. The number of mining rigs has been agreed to be a minimum of 12,500, with potentially up to 2,500 more (at no extra cost to the Company), depending on how many more can be secured by Yitang before completion (together, the "Transaction").
The Mining Facility, when completed, will be able to house 90,000 mining rigs and have a capacity of 70MW, which the Company believes will make it one of the largest dedicated Dogecoin/Litecoin mining facility in the world. When fully deployed, the Mining Assets are believed to account for 3-5% of the Dogecoin/Litecoin hashrate in the world, which the Company believes would make it the world's third largest Dogecoin/Litecoin miner.
The Company has agreed to acquire the initial 15% interest in the Mining Facility for a cash payment of RMB 5,000,000 (equal to approximately C$975,000 based on the exchange rate posted by the Bank of Canada on March 5, 2021 of 0.1950) and the Company will have the option to acquire a further 20% interest in the Mining Facility (for a total interest of 35%) for an additional cash payment to be agreed upon between the parties, each acting reasonably, however, not to exceed RMB 8,000,000 (equal to approximately C$1,560,000 based on the exchange rate posted by the Bank of Canada on March 5, 2021 of 0.1950).