Toronto, Ontario–(January 7, 2021) – Hydro66 Holdings Corp. (CSE: SIX) (the “Company” or “Hydro66“) announces that on December 30, 2020, the Company entered into a letter of intent for the sale of its assets including the Data Center in Sweden held in Hydro66 UK Limited and its subsidiaries, Hydro Svenska and Hydro Svenska Services, to Northern Data AG (“Northern Data“) (XETRA: NB2) for €4m in cash and €21m in shares of Northern Data. The shares to be received in connection with the proposed transaction will be subject to resale restrictions for a 24 months period following completion of the proposed transaction. Hydro66 will retain its Megamining Limited subsidiary.
David Rowe, CEO of Hydro66, said, “Incorporating Hydro66’s assets, expertise and expansion capability into Northern Data’s plans is a win for both parties. Aroosh continues to create huge value for Northern Data shareholders through a series of astute moves and I believe this proposed transaction will benefit both parties in delivering shareholder value.”
Aroosh Thillainathan, CEO of Northern Data, said, “The acquisition helps us to meet the current strong demand for HPC through our own infrastructure. Hydro66 have built a unique facility and brand in Sweden which is ideal for AI and ML type HPC applications. We intend to expand the site during the year and utilise the low power costs and exceptional green credentials of the facility to meet customer demand and deliver enhanced profitability for the Northern Data Group in 2021 and beyond. David and his team have in depth experience which will prove invaluable for Northern Data as we expand to cement our position as the leaders in HPC globally.”
Under the terms of the letter of intent, completion of the proposed transaction is subject to a number of conditions including, but not limited to: negotiation of the proposed transaction, the completion of satisfactory due diligence investigations; negotiation and execution of a definitive agreement; receipt of all necessary consents, approvals and other authorizations of any regulatory authorities, shareholders or third parties, including but not limited to the approval of the Canadian Securities Exchange; and satisfaction of closing conditions. The parties have agreed to an exclusivity period until March 31, 2021 with a view to settling the definitive agreement. However, there can be no assurance that the proposed transaction will be completed as proposed or at all. Due to the numerous conditions to be satisfied in connection with the proposed transaction trading in the securities of the Company should be considered highly speculative. Further details of the proposed transaction will be disseminated when they become available.
Hydro66 owns and operates an award-winning colocation data centre in Sweden specializing in High Performance Computing (“HPC“) hosting. The Company hosts third party IT infrastructure, utilizing 100% green power, at amongst the EU’s lowest power prices and within an ISO27001 accredited facility.
Hydro66 is uniquely positioned to capitalize on opportunities in blockchain infrastructure as well as the traditional Enterprise colocation data centre market. The Company provides truly green power at a leading price, purpose-built space and cooling, telecoms, IT support services and 24/7 physical security in their facility in Boden, Sweden.
For more information please visit: www.hydro66.com
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