Luxxfolio agrees to acquire crypto mining company, WestBlock Capital

VANCOUVER: Luxxfolio Holdings Inc. has entered into a definitive agreement to acquire all of the issued and outstanding shares of privately-held WestBlock Capital Inc., to be effected by way of a three-cornered amalgamation between WestBlock, Luxxfolio and a wholly-owned subsidiary of Luxxfolio.

The consideration payable to WestBlock shareholders in the transaction consists of 16 million common shares and 2.5 million share purchase warrants of Luxxfolio.

WestBlock Capital Inc. is an integrated digital asset mining company that operates an industrial scale cryptocurrency mining operation in New Mexico.

WestBlock was able to secure access to land and electricity at significantly reduced cost in the bottom decile of global power costs for their mining operations through its exclusive partnership with the Navajo Nation.

In connection with the Transaction, WestBlock is to acquire a 100% interest in the facility, while remaining a partner with the Navajo Nation through an ongoing power purchase arrangement.

The management of WestBlock will join the Luxxfolio team by carrying on with their leadership roles for the WestBlock business, as WestBlock continues to operate as a wholly owned subsidiary of Luxxfolio, post-closing.

On closing, Luxxfolio will issue 2.5 million performance warrants of Luxxfolio to the management team of WestBlock, holders of WestBlock performance warrants, and certain other persons who have assisted WestBlock with its business.

Both the Warrants and Performance Warrants will be exercisable for one common share of the Company for a period of 24 months at an exercise price of $0.40 per share if exercised in the first 12 months and $0.50 per share if exercised thereafter.

Luxxfolio Holdings Inc. is a growth-oriented, CSE-listed company based in Canada. The Company is a digital infrastructure company that utilizes blockchain technology to convert unique identifiable assets (UIAs) into fungible digital assets such as Bitcoin and non fungible digital assets such as NFTs.

It provides a liquid alternative for exposure to digital assets for the broader capital markets. www.luxxfolio.com

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