Toronto, Ontario--(Newsfile Corp. - January 8, 2018) - Aumento Capital VI Corporation (TSXV: AUO.P) ("ACC" or the "Corporation") and CryptoStar Inc. ("CryptoStar") are pleased to announce that on January 4, 2018, CryptoStar completed a private placement of 43,000,000 common shares of CryptoStar at a price of $0.50 per share for gross proceeds of $21,500,000 (the "Private Placement"). The net proceeds from the Private Placement are anticipated to be used to expand mining capacity of CryptoStar and for general working capital expenses.
On December 22, 2017 the Corporation and CryptoStar announced they had entered into a letter of intent with respect to a reverse takeover of the Corporation by CryptoStar and its shareholders. The Corporation is a capital pool company and intends for the acquisition of CryptoStar to constitute its Qualifying Transaction (as such term is defined in the policies of the TSX Venture Exchange (the "TSXV")).
Further details regarding the Qualifying Transaction are available in the Corporation's press release issued December 19, 2017.
For further information:
Aumento VI Capital Corporation
David Danziger, Chief Executive Officer
David.Danziger@mnp.ca
CryptoStar Inc.
David Jellins, CEO
david.jellins@cryptostar.com
Completion of the Qualifying Transaction is subject to a number of conditions, including but not limited to, TSX Venture Exchange acceptance and if applicable pursuant to TSX Venture Exchange Requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Qualifying Transaction, any information release or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking information generally refers to information about an issuer's business, capital, or operations that is prospective in nature, and includes future-oriented financial information about the issuer's prospective financial performance or financial position.
The forward-looking information in this news release includes disclosure about the terms of the Qualifying Transaction and the proposed structure of the Qualifying Transaction.
ACC and CryptoStar made certain material assumptions, including but not limited to: prevailing market conditions; general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; and the ability of the resulting issuer to execute and achieve its business objectives, to develop the forward-looking information in this news release. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Actual results may vary from the forward-looking information in this news release due to certain material risk factors. These risk factors include, but are not limited to: adverse market conditions; the inability of ACC or CryptoStar to complete the proposed transaction on the terms disclosed in this news release, or at all; refusal of the proposed directors or officers to act for any reason, including conflicts of interest; reliance on key and qualified personnel; and regulatory and other risks associated with the cryptocurrency industry in general. The foregoing list of material risk factors and assumptions is not exhaustive.
ACC assumes no obligation to update or revise the forward-looking information in this news release, unless it is required to do so under Canadian securities legislation.
(Not for distribution to US wire services or for dissemination in the United States of America)
