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Canada Computational Unlimited Corp. Announces Early Repayment of Bitcoin Loans and Purchase of Equipment
Toronto, Ontario--(Newsfile Corp. - September 29, 2021) - Canada Computational Unlimited Corp....
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[{"type":"text","content":"Canada Computational Unlimited Corp. Announces Early Repayment of Bitcoin Loans and Purchase of EquipmentToronto, Ontario--(Newsfile Corp. - September 29, 2021) - Canada Computational Unlimited Corp. (TSXV: SATO) (the \"Corporation\") announces today that Canada Computational Unlimited Inc. (\"CCU.ai\"), a wholly owned subsidiary of the Corporation, completed the early repayment of loans payable which are repayable in Bitcoin on September 29, 2021 (the \"Termination Date\"). Description of the BTC Loan Agreements On June 30, 2019, CCU entered into bitcoin loan agreements (the \"BTC Loan Agreements\") pursuant to which it borrowed a total of 118.4743 bitcoins (\"BTC\") from eight shareholders of CCU: Romain Nouzareth, Mathieu Nouzareth, Julien Romanetto, Frédéric Montagnon and four other arm's length shareholders of CCU (collectively, the \"Lenders\"). The proceeds of the BTC Loan Agreements were used by CCU to purchase new mining equipment and increase its capacity to self-mine BTC. The BTC Loan Agreements provided CCU the ability to elect to repay in BTC according to pre-established phmaiases as described in the BTC Loan Agreements: Early Repayment PhasesPhase 1: Each month until the mining equipment is connected, the Borrower will pay each Lender 0.075 BTC. Phase 2: From the time the mining equipment is operational until the Borrower has repaid each Lender 3 BTC, the Borrower will pay to such Lender 85% of the BTC created using the mining equipment, less the electricity costs and the pool costs (1%) (the \"Contribution Margin\"). Phase 3: For 18 months after the end of Phase 2, repayment of 50% of the Contribution Margin.No security was granted by CCU on any of its assets in connection with the BTC Loan Agreements, nor are there any securities of CCU or the Corporation to be issued in repayment of the BTC Loan Agreements. Repayment of the BTC Loans Agreements CCU made all payments required under Phase 1 of the BTC Loan Agreements until connection of the mining equipment. On the Termination Date, CCU and the Lenders agreed to proceed with the early repayment of all outstanding indebtedness under the BTC Loan Agreements and the payment of all other amounts owed to the Lenders pursuant to Phase 2 and Phase 3 of the BTC Loan Agreements (the \"Early Repayment\"). As of the date of the Early Repayment, a total of 12.1643 B...