LUXXFOLIO Achieves Milestone with Agreement to acquire Crypto Mining Company
VANCOUVER, BC, April 7, 2021 /CNW/ – LUXXFOLIO Holdings Inc. (“Luxxfolio” or the “Company”) (CSE: LUXX) is pleased to announce it has achieved another milestone in its plan to secure strategic infrastructure in low-cost power jurisdictions to support its growth in the monetizing of uniquely identified assets. The Company has entered into a definitive agreement (the “Amalgamation Agreement”) under which Luxxfolio will acquire all of the issued and outstanding shares of privately-held WestBlock Capital Inc. (“WestBlock”), to be effected by way of a three-cornered amalgamation between WestBlock, Luxxfolio and a wholly-owned subsidiary of Luxxfolio (the “Transaction”).
The consideration payable to WestBlock shareholders in the Transaction consists of 16 million common shares and 2.5 million share purchase warrants (the “Warrants”) of Luxxfolio. The terms of the transaction remain consistent with the news release dated Feb 10, 2021, except as otherwise disclosed herein.
WestBlock Capital Inc. is an integrated digital asset mining company that operates an industrial scale cryptocurrency mining operation in New Mexico. WestBlock was able to secure access to land and electricity at significantly reduced cost in the bottom decile of global power costs for their mining operations through its exclusive partnership with the Navajo Nation. In connection with the Transaction, WestBlock is to acquire a 100% interest in the facility, while remaining a partner with the Navajo Nation through an ongoing power purchase arrangement.
- WestBlock currently is utilizing 8 MW of the 15 MW mining facility;
- The anticipated operating hash power shortly after closing is targeted to be 63 petahashes (“PH”);
- The facility has excess capacity with certain power upgrades to grow the PH’s by over 4 times based on current mine power hash technology and availability;
- WestBlock is currently holding 19 BTC with plans to continue to grow their inventory of crypto assets on their balance sheet.
WestBlock’s vision is to scale its low-cost mining operation and develop other cryptocurrency related revenue streams by leveraging supplier relationships, growing its inventory of crypto assets, and by taking advantage of Luxxfolio’s unique access to structured financial products. Located in Calgary, Alberta, WestBlock has been operating in the cryptocurrency sector since 2017.
The management of WestBlock will join the Luxxfolio team by carrying on with their leadership roles for the WestBlock business, as WestBlock continues to operate as a wholly owned subsidiary of Luxxfolio, post closing. The management team of WestBlock includes:
Ken MacLean – WestBlock CEO
Ken began working in the technology world with positions at IBM, Sun Microsystems and Digital (DEC). Starting and selling a business during the Dotcom boom began his entrepreneurial pursuits and since then Ken has been an integral part of financing and building organizations across multiple…