Ann: CHP Secures Amended GPU.One Term Sheet & Capital Raise, page-2

Looks like the ASX wasn’t happy with the 50% stake that CHP were planning on acquiring, with CHP now settling on 20% instead. The new re structured deal, however, looks significantly better for CHP


The original GPU One deal went as follows

$7.5m up front + $7.5m on a deferred basis for a 50% holding of GPU.One


The new GPU.One deal is as follows

$2.5m up front for a 20% holding of GPU.One


The original deal would’ve seen CHP only acquire around 8.33% of GPU.One stock for $2.5m, contrary to the 20% holding it is acquiring with the re jigged deal.


Crypto prices at the time this deal was being done were far less than what they are now, thus putting a far higher profit margin on its mining activities


When you look at other crypto mining related companies that are listed

• HUT8 ($250m+ market cap)
• HIVE ($300m+ market cap)

Once the company is eventually listed, a 20% stake of even a $100m market cap would be worth $20m to CHP on a conservative basis.


Deal looks good