Mr. David Jellins reports
CRYPTOSTAR CORP. PROVIDES UPDATE ON ALBERTA OPERATIONS
Cryptostar Corp. has provided an update on business operations and recent developments with respect to its power supply agreement (PSA) for up to 30 megawatts (MW) with 611890 Alberta Inc., doing business as Avila Energy, and its data centres in Alberta, Canada.
On Dec. 1, 2021, the company filed a notice of action and notice of motion against the Alberta partner et al. with the Ontario Superior Court of Justice due to the Alberta partner's non-compliance with terms of the PSA. On Dec. 8, 2021, the parties agreed to adjourn the notice of motion on a returnable basis, in an attempt to resolve the outstanding issues.
The company and the Alberta partner are continuing to work to resolve the issues; however, the company anticipates delays to the deployment dates for the company's equipment hosting agreements (EHAs) for five MW announced on Aug. 31, 2021, 10 MW announced on Sept. 2, 2021, and 10 MW announced on Sept. 24, 2021. The impact of the delays will be a deferral of the associated revenues, and may include financial credits as set out in the EHAs, temporary reductions in the company's self-mining hash rate and associated revenues in the event that equipment is relocated. The company will provide further updates of any material changes.
About Cryptostar Corp.
Cryptostar has cryptocurrency mining operations with data centres located in the United States 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.
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