/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
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OR FOR DISSEMINATION IN THE UNITED
STATES/
TSXV: CSTR
TORONTO, March 15, 2021 /CNW/ - CryptoStar Corp.
(TSXV: CSTR) ("CryptoStar" or the "Company"), a
cryptocurrency mining and data centre operator, is pleased to
announce that it has closed its previously announced 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
issued 83,333,334 Common Shares and Warrants to purchase 83,333,334
Common Shares at a purchase price of CAD$0.30 per Common Share and associated Warrant.
Each Warrant entitles 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. acted as the exclusive placement agent
for the Private Placement.
The net proceeds of the Private Placement are expected to be
used by the Company for business operations and expansion of its
business, to reduce indebtedness and for general working capital
purposes.
H.C. Wainwright & Co. received (i) a cash commission equal
to 7.0% of the gross proceeds of the Private Placement and (ii)
5,833,333 non-transferable broker warrants (the "Broker
Warrants"). Each Broker Warrant entitles the holder to purchase
one common share at an exercise price of CAD$0.375 for a period of three and one-half
(3.5) years following the closing date of the Private
Placement.
No securities were offered or sold to Canadian residents in
connection with the Private Placement. The securities issued under
the Private Placement are subject to resale restrictions in
the United States under applicable
U.S. federal and state securities laws with no resale restrictions
in Canada.
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 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 TSX Venture Exchange ("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 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.
