TORONTO, March 06, 2020 (GLOBE NEWSWIRE) — Cryptologic Corp. (“Cryptologic” or the “Company”) (CSE:CRY) wishes to provide an update with respect to the proposed sale of all or substantially all of the Company’s assets (the “Asset Sale”). This update is supplemental to the disclosure with respect to the Asset Sale in the Company’s management information circular (the “Circular”) dated February 10, 2020 in respect of the annual and special meeting of shareholders of the Company (the “Shareholders”) to be held at the Company’s offices at 5 Hazelton Avenue, Suite 300, Toronto Ontario, M5R 2E1 at 1:30 p.m. (Toronto time) on March 13, 2020 (the “Shareholders’ Meeting”). All references to dollar amounts or “$” in this press release are to Canadian dollars.
The Company’s cryptocurrency assets consist of two components: (i) the cryptocurrency mining machines (“Miners”); and (ii) the purpose-built cryptocurrency data centres, including HVAC and electrical infrastructure that is unique to cryptocurrency mining (the “Facilities”). The Company has two Facilities: (i) one in Lachute, Quebec (the “828 Assets”), which includes access to 30 MW of power and (ii) one in Pointe-Claire, Quebec (the “Crypto 205 Assets”), which includes access to 6 MW of power.
Asset Sale Process
In August 2019, the Company announced that it intended to sell its cryptocurrency mining assets and complete a strategic pivot of the business. As a result, the Company contacted potential strategic purchasers globally to sell the highly specialized 828 Assets and the Crypto 205 Assets, and in October engaged a broker to source additional potential purchasers.
Between August and September 2019, Cryptologic sold approximately 8,500 Miners at an average price of $352 per Miner. Although the selling price of Miners was falling, the Board made a strategic decision to suspend the sale of Miners as it was expected that the decrease in the value of the…