TORONTO, Jan. 3, 2023
/CNW/ - CryptoStar Corp. (TSXV: CSTR) (OTCQB: CSTXF)
("CryptoStar" or the "Company"), a
cryptocurrency mining and data centre operator, is
pleased to announce that it has renewed its line of credit (the
"Line of Credit") with ACN 117 402 838 PTY LTD
("ACN") for a further 54-month term ending in June 2026. The Line of Credit is a revolving
credit facility available to fund general corporate purposes with a
maximum principal amount of approximately USD$1.77 million. The Line of Credit bears
interest at a rate of 12% per annum, payable monthly in arrears,
together with a minimum monthly repayment of principal amount
outstanding of USD$32,776.73. As
consideration for renewing the Line of Credit, the Company repaid
USD$196,660.37 of the principal
amount outstanding of approximately USD$1.97
million under the previous Line of Credit today.
The Line of Credit with ACN constitutes a "related party
transaction" of CryptoStar, within the meaning of Multilateral
Instrument 61-101 – Protections of Minority Security Holders in
Special Transactions ("MI 61-101"). The Company
determined that the renewal of its Line of Credit is exempt from
the formal valuation and minority approval requirements of MI
61-101 in reliance of the exemptions set forth in sections 5.5(b)
and 5.7(f). The Company did not file a material change report 21
days prior to renewal of the Line of Credit as the terms and
conditions of the Line of Credit were not agreed upon until shortly
prior to the renewal.
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.
W: www.cryptostar.com
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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 CryptoStar's plans of becoming one of the lowest cost
cryptocurrency producers in North America and a major supplier of GPU and
ASIC miners worldwide. 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.