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Hello Pal Signs Definitive Purchase Agreement to Acquire Interest in Dogecoin/Litecoin Mining Assets
The consideration for the Transaction is C$1,500,000 payable in cash and 1,800,000 units of the Company (the "Consideration Units") valued at C$2,250,000 . Each Consideration Unit will have a deemed value of C$1.25 and consist of one common share of the Company (each, a "Common Share") and one-half of one common share purchase warrant of the Company (each whole common share purchase warrant, a "Consideration Warrant"). Each Consideration Warrant will entitle the holder thereof to acquire one Common Share at an exercise price of C$2.00 for a period of two years from the date of issue.
For a period of two years following the completion of the Transaction, the Company will have the option to acquire a further 49% interest in the Mining Assets (for a total interest of 100%) for an additional payment, as to half in cash and half in Common Shares (the number of Common Shares to be determined in the context of the market), where the valuation of the Mining Assets is dependent on their net profit over a 12-month period immediately preceding the date on which this option is exercised, multiplied by a formulated multiplier.
"With the signing of the definitive agreement with Yitang, we have taken the next step towards having cryptocurrency as an integral part of Hello Pal," said KL Wong, Founder and Chairman of the Company.
Completion of the Transaction is expected to occur before the end of April 2021 and is subject to certain conditions, including but not limited to: (a) completion of a due diligence report by a "Big Four" accounting firm on the Mining Assets in a form satisfactory to the Company; (b) the receipt of all necessary approvals from the Company's board of directors; (c) the receipt of all required consents and approvals, including without limitation, approval by the Canadian Securities Exchange; and (d) satisfaction of the escrow release conditions in connection with the previously announced private placement of subscription receipts.
"We are also ecstatic that our choice of cryptocurrencies to mine seems to have been validated especially by the recent incredible surge in market interest and activity of Dogecoin. As far as we are aware, upon completion of this transaction, we shall be the only publicly listed company with primary exposure to Dogecoin," added Mr. Wong.
The previously announced 'commercially reasonably efforts' private placement of subscription receipts led by Canaccord Genuity Corp. is now expected to close on or around April 22, 2021 or such other date as Canaccord and the Company may agree. See news release dated March 8, 2021 for further details regarding the private placement.
Yitang, a leading provider of digital wallet services with over US$70 million in crypto-assets under management, is also helping the Company to revamp and reintroduce its digital wallet as well as its own digital token called "Palto". Upon completion of the revamp, the Company's current virtual tokens used on its livestreaming platform is expected to be fully enhanced and backed by blockchain technology, with Palto and popular cryptocurrency such as Bitcoin, Ethereum, Litecoin and Dogecoin accepted throughout the platform. First launched in 2018 (see news release of the Company dated October 9 , 2018), Palto (PLT) is a utility token that will be used across the entire Hello Pal suite of apps in order to allow for the borderless transfer of value between Hello Pal users across the world.
To download Hello Pal please visit the IOS or Android store. For information with respect to the Company or the contents of this news release, please contact the Company at (604) 683-0911 or visit the website at hellopal.com. Email inquiries can be directed to: investors@hellopal.com.
The Hello Pal Platform is a proprietary suite of mobile applications built on a user-friendly messaging interface that focus on social interaction, language learning and travel. Hello Pal, has been designed from the ground up to be easy to use and enables users' the freedom to speak in their own language regardless of the other person's language they are speaking to. Hello Pal's overriding mission is to bring the world closer together through social interaction, language learning and travel. By creating a platform where it is easy to instantly interact with others around the world and giving them the tools to communicate with each other in a joyful and fun way, we hope to do our part (however small) in fostering understanding and tolerance between all citizens of the world.
www.hellopal.com
p 604-683-0911
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