Code Chain New Continent (CCNC) Announces LOI to Acquire Cryptocurrency Mining Center
- S&P 500, Dow climb for third day and close at records
- Tesla (TSLA) China Numbers 'Robust' - Wedbush
- Apple (AAPL) Shares Seen as 'Attractive' as Recent Checks Show Continuously Strong Demand - Citi
- Investors Poured More Money Into Stocks in Past 5 Months Than Last 12 Years, Says BofA, Analysts Worried About Stretched Valuations
- Amazon.com warehouse workers vote to reject forming union in Alabama
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
Code Chain New Continent Limited (the "Company" or "Code Chain") (NASDAQ: CCNC), a leading eco-technology company, announced today the execution of a Letter of Intent ("LOI") to acquire 61% of Xiaojin Langlang Technology Co., Ltd. ("Xiaojin Langlang"). Founded in March 2020, Xiaojin Langlang is a leading cryptocurrency mining center in China. They engage in internet information management, big data resource services, server hosting, mechanical equipment leasing, computer and communication equipment operation, value-added telecommunications services, software and information technology, information System operation and maintenance, and socio-economic consulting, excluding investment and financing consulting services.
Under the terms of the LOI, the total consideration for 61% of Xiaojin Langlang's equity interest is expected to be RMB 36 million (approximately USD 5.6 million), subject to completion of a third-party valuation. Of this amount, 50% shall be paid in cash, and 50% shall be paid in the Company's shares of common stock. Code Chain is required to pay $500,000 within 7 business days from the signing date of the LOI, which will be applied to the final purchase price upon entry in to the material definitive purchase agreement.
The Company will award additional shares of common stock annually to Xiaojin Langlang based on the post-investment financial performance. The details are as follows:
i. If Xiaojin Langlang achieves a net income of RMB 40 million (approximately USD 6.2 million) or more in 2021 (the "2021 Net Income Goal"), the Company shall issue 300,000 shares of common stock to Xiaojin Langlang;
ii. If Xiaojin Langlang achieves a net income of RMB 60 million (approximately USD 9.3 million) or more in 2022 (the "2022 Net Income Goal"), the Company shall issue 300,000 shares of common stock to Xiaojin Langlang;
iii. If Xiaojin Langlang achieves a net income of RMB 70 million (approximately USD 10.8 million) or more in 2023 (the "2023 Net Income Goal"), the Company shall issue 400,000 shares of common stock to Xiaojin Langlang.
With RMB 50 million invested into it, the data center covers 7,000 square meters and has 62,000 kWH capacity. This capacity allows the center to accommodate more than 20,000 mining machines. The center is dedicated in providing system hosting services for cryptocurrency mining including computer rooms, power facilities, broadband networks, security monitoring, heat dissipation and cooling, daily management, and related technical support.
Mr. David (Weidong) Feng, Co-CEO of the Company, commented, "We are excited to announce the proposed acquisition of Xiaojin Langlang. Cryptocurrency mining has gone through rapid evolution with scalability and infrastructure. With Xiaojin Langlang's platform, the acquisition enables us to accelerate our move into crypto mining. We believe our combined efforts will bring growth opportunities and create long-term value for our respective."
The transaction remains subject to completion of due diligence reviews, customary definitive documentation and final approval by the board of both Code Chain and Xiaojin Langlang Financial Leasing. As a result, there is no assurance that the transaction will be consummated.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Grab is said to announce deal with Altimeter Growth Corp (AGC) next week - Bloomberg
- Yucaipa Acquisition (YAC) Said in Talks for $4B Signa Sports Deal - Bloomberg
- Genmab A/S (GMAB) and Seagen (SGEN) Announce U.S. FDA Filing Acceptance for Priority Review of Tisotumab Vedotin BLA for Patients with Recurrent or Metastatic Cervical Cancer
Create E-mail Alert Related CategoriesCorporate News, Management Comments, Mergers and Acquisitions
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!