/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
TSXV: CSTR
TORONTO, March 10, 2021 /CNW/ - CryptoStar Corp. (TSXV:
CSTR) ("CryptoStar" or the "Company"), a
cryptocurrency mining and data centre operator, is pleased to
announce that it has entered into a securities purchase agreement
for a private placement of its common shares ("Common
Shares") and warrants to purchase common shares
("Warrants") to institutional investors for gross proceeds
of approximately CAD$25.0 million
(the "Private Placement"). Pursuant to the Private
Placement, the Company will issue up to 83,333,334 Common Shares
and Warrants to purchase up to 83,333,334 Common Shares at a
purchase price of CAD$0.30 per Common
Share and associated Warrant. Each Warrant will entitle the holder
to purchase one Common Share at an exercise price of CAD$0.40 per Common Share for a period of three
and one-half (3.5) years following the closing date of the Private
Placement.
H.C. Wainwright & Co. is acting as the exclusive placement
agent for the Private Placement.
The net proceeds of the Private Placement will be used by the
Company for business operations and expansion of its business, to
reduce indebtedness and for general working capital purposes.
The Company has applied to list the Common Shares issued in the
Private Placement and the Common Shares underlying the Warrants on
the TSX Venture Exchange ("TSXV"). The Private Placement is
expected to close on or about March 15,
2021, subject to satisfaction of customary closing
conditions, including receipt of conditional approval by the TSXV
for the Private Placement.
No securities were offered or sold to Canadian residents in
connection with the Private Placement.
This news release shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of
the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
This news release does not constitute an offer of securities for
sale in the United States. The
securities being offered have not been, nor will they be,
registered under the United States Securities Act of 1933, as
amended, and such securities may not be offered or sold within
the United States absent
registration under U.S. federal and state securities laws or an
applicable exemption from such U.S. registration
requirements.
About CryptoStar Corp.:
CryptoStar has cryptocurrency mining operations with data
centres located in the U.S.A. and
Canada. CryptoStar is currently
dedicated to becoming one of the lowest cost cryptocurrency
producers in North America and a
major supplier of GPU and ASIC miners worldwide.
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this press release.
Forward-Looking Statements
This news release contains forward-looking statements.
Forward-looking statements can be identified by the use of words
such as, "expects", "is expected", "anticipates", "intends",
"believes", or variations of such words and phrases or state that
certain actions, events or results "may" or "will" be taken, occur
or be achieved. Forward-looking statements include those relating
to the Private Placement including closing of the Private Placement
and approval of the TSXV thereof and the use of net proceeds from
the Private Placement. Forward-looking statements are not a
guarantee of future performance and are based upon a number of
estimates and assumptions of management in light of management's
experience and perception of trends, current conditions and
expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances. Actual
results, performance or achievement could differ materially from
that expressed in, or implied by, any forward-looking statements in
this press release, and, accordingly, you should not place undue
reliance on any such forward-looking statements and they are not
guarantees of future results. Forward-looking statements involve
significant risks, assumptions, uncertainties and other factors
that may cause actual future results or anticipated events to
differ materially from those expressed or implied in any
forward-looking statements. Except as required by law, CryptoStar
undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
SOURCE CryptoStar Corp.
