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    Hey Pal Proclaims Proposed Transaction to Purchase Pursuits in Dogecoin/Litecoin Mining Facility and Mining Property and Non-public Placement to Elevate as much as C$5 Million by means of Subscription Receipts

    NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

    VANCOUVER, BC, March 8, 2021 /PRNewswire/ — Hey Pal Worldwide Inc. (“Hey Pal” or the “Firm”) (CSE:HP) (Frankfurt:27H) (OTC:HLLPF), a supplier of worldwide live-streaming, social messaging and language studying cellular apps, is happy to announce that it has entered right into a letter of intent (the “LOI”) with Shanghai Yitang Information Know-how Co. Ltd. (“Yitang”) to amass:

    (a) an preliminary 15% curiosity in a cryptocurrency mining facility (the “Mining Facility”) positioned in North-West China to be devoted to mining Dogecoin (DOGE) and Litecoin (LTC), with an possibility to extend such curiosity to 35%; and

    (b) an preliminary 51% curiosity in numerous mining rigs additionally devoted to mining Dogecoin and Litecoin (the “Mining Property”), with an possibility to extend such curiosity to 100%. The variety of mining rigs has been agreed to be a minimal of 12,500, with doubtlessly as much as 2,500 extra (at no further price to the Firm), relying on what number of extra may be secured by Yitang earlier than completion

    (collectively, the “Transaction”).

    The Transaction

    The Mining Facility, when accomplished, will be capable of home 90,000 mining rigs and have a capability of 70MW, which the Firm believes will make it one in all the biggest devoted Dogecoin/Litecoin mining facility on this planet. When totally deployed, the Mining Property are believed to account for 3-5% of the Dogecoin/Litecoin hashrate on this planet, which the Firm believes would make it the world’s third largest Dogecoin/Litecoin miner.

    The Firm has agreed to amass the preliminary 15% curiosity within the Mining Facility for a money cost of RMB 5,000,000 (equal to roughly C$975,000 primarily based on the alternate price posted by the Financial institution of Canada on March 5, 2021 of 0.1950) and the Firm could have the choice to amass an extra 20% curiosity within the Mining Facility (for a complete curiosity of 35%) for a further money cost to be agreed upon between the events, every appearing moderately, nevertheless, to not exceed RMB 8,000,000 (equal to roughly C$1,560,000 primarily based on the alternate price posted by the Financial institution of Canada on March 5, 2021 of 0.1950).

    The Firm has additionally agreed to amass the preliminary 51% curiosity within the Mining Property for C$1,500,000 in money and 1,800,000 models of the Firm (the “Consideration Models”) valued at C$2,250,000. Every Consideration Unit could have a deemed worth of C$1.25 and consist of 1 frequent share of the Firm (every, a “Frequent Share”) and one-half of 1 frequent share buy warrant of the Firm (every complete frequent share buy warrant, a “Consideration Warrant”). Every Consideration Warrant will entitle the holder thereof to amass one Frequent Share at an train value of C$2.00 for a interval of two years from the date of challenge.

    For a interval of two years following the completion of the Transaction, the Firm could have the choice to amass an extra 49% curiosity within the Mining Property (for a complete curiosity of 100%) for a further cost, as to half in money and half in Frequent Shares (the variety of Frequent Shares to be decided within the context of the market), the place the valuation of the Mining Property relies on their web revenue over a 12-month interval instantly previous the date on which this feature is exercised, multiplied by a formulated multiplier.

    “We’re excited to increase our crypto technique to additionally embody Dogecoin and Litecoin, which we imagine will play an more and more essential function within the cryptocurrency world going ahead,” mentioned KL Wong, Founder and Chairman of the Firm. “The Hey Pal group, particularly what we envision for it to turn into, is a pure match with the Dogecoin/Litecoin group, and this deal permits us to turn into a key participant in it,” he added.

    The Providing

    The Firm additionally broadcasts that it has entered into an settlement with Canaccord Genuity Corp. (“Canaccord”), as lead agent and sole bookrunner, by itself behalf and on behalf of a syndicate of brokers which can be fashioned (the “Brokers”) in reference to a “commercially affordable efforts” non-public placement of as much as 4,000,000 subscription receipts of the Firm (the “Subscription Receipts”) at a value of C$1.25 per Subscription Receipt (the “Challenge Value”) for mixture gross proceeds of as much as C$5,000,000 (the “Providing”). Every Subscription Receipt can be robotically exercised into one unit of the Firm (every, a “Unit”) upon satisfaction of sure circumstances (the “Escrow Launch Situations”) referring to the completion of the Transaction. Every Unit will consist of 1 Frequent Share and one-half of 1 frequent share buy warrant of the Firm (every complete frequent share buy warrant, a “Warrant”), with every Warrant entitling the holder thereof to buy one Frequent Share at a value of C$2.00 for a interval of two years from the date on which the Escrow Launch Situations are happy. The Firm has granted to the Brokers an choice to promote as much as a further 4,000,000 Subscription Receipts on the Challenge Value for extra gross proceeds of as much as C$5,000,000, exercisable in complete or partially at any time as much as 48 hours previous to the closing of the Providing.

    The proceeds from the sale of the Subscription Receipts (much less sure deductions) can be held in escrow pending satisfaction of the Escrow Launch Situations and, following completion of the Transaction, are anticipated for use in direction of the purchases of the Mining Facility and the Mining Property described above, additional potential asset acquisitions pursuant to the Firm’s cryptocurrency technique, growth of its livestreaming operations, and for working capital functions. If the Escrow Launch Situations should not happy by Might 31, 2021 or such later date as agreed to by the Firm and Canaccord, the escrowed proceeds from the sale of the Subscription Receipts can be returned to purchasers and the Subscription Receipts can be cancelled.

    In reference to the Providing, the Firm has, topic to regulatory approval, agreed to: (i) pay to the Brokers, a price of seven% of the gross proceeds of the Providing, payable in money; (ii) challenge to the Brokers non-transferable warrants (the “Brokers’ Warrants”) equal to 7% of the combination variety of Subscription Receipts offered underneath the Providing; and (iii) pay to Canaccord a money price equal to C$200,000, payable one-half in money and one-half in Frequent Shares on the Challenge Value (80,000 Frequent Shares). Every Brokers’ Warrant will entitle the holder thereof to amass one Frequent Share on the Challenge Value for a interval of two years from the date on which the Escrow Launch Situations are happy.

    The Providing is anticipated to shut on or round April 15, 2021 or such different date as Canaccord and the Firm might agree.

    The securities provided haven’t been registered underneath the U.S. Securities Act of 1933, as amended, and will not be provided or offered in the USA absent registration or an relevant exemption from the registration necessities. This information launch shall not represent a suggestion to promote or the solicitation of a suggestion to purchase nor shall there be any sale of the securities in any State through which such provide, solicitation or sale could be illegal.

    Situations to Completion of the Transaction

    Completion of the Transaction can be topic to sure circumstances, together with however not restricted to: (a) the Firm and Yitang getting into into the definitive agreements (the “Definitive Agreements”) in respect of the Transaction; (b) the receipt of all vital approvals of the boards of administrators of the Firm and Yitang; (c) the receipt of all required consents and approvals, together with with out limitation, approval of the Transaction and the Providing by the Canadian Securities Alternate; (d) satisfaction of the Escrow Launch Situations; and (e) the completion of passable mutual due diligence. The LOI could also be terminated by both occasion if (i) they mutually agree; or (ii) the Definitive Agreements haven’t been executed on or earlier than Might 31, 2021 or such later date as could also be agreed to by the events.

    About Yitang

    Yitang, a number one supplier of digital pockets companies with over US$70 million in crypto-assets underneath administration, can be serving to the Firm to revamp and reintroduce its digital pockets in addition to its personal digital token referred to as “Palto”. Upon completion of the revamp, the Firm’s present digital tokens used on its livestreaming platform is anticipated to be totally enhanced and backed by blockchain know-how, with Palto and widespread cryptocurrency comparable to Bitcoin, Ethereum, Litecoin and Dogecoin accepted all through the platform. First launched in 2018 (see information launch of the Firm dated October 9th, 2018), Palto (PLT) is a utility token that can be used throughout the whole Hey Pal suite of apps so as to permit for the borderless switch of worth between Hey Pal customers internationally.

    “We’re significantly bullish about the way forward for Dogecoin, particularly within the potential of it changing into “the foreign money of the individuals”,” mentioned Hans Xu, advisor to Hey Pal. “On the again of our previously-announced Bitcoin mining initiative, we anticipate this deal to assist us improve the prominence of cryptocurrencies amongst our customers even additional.”

    To obtain Hey Pal please go to the IOS or Android retailer. For data with respect to the Firm or the contents of this information launch, please contact the Firm at (604) 683-0911 or go to the web site at hellopal.com. E mail inquiries may be directed to: [email protected].

    In regards to the Hey Pal Platform

    The Hey Pal Platform is a proprietary suite of cellular functions constructed on a user-friendly messaging interface that concentrate on social interplay, language studying and journey. Hey Pal, has been designed from the bottom as much as be straightforward to make use of and allows customers’ the liberty to talk in their very own language whatever the different individual’s language they’re chatting with. Hey Pal’s overriding mission is to deliver the world nearer collectively via social interplay, language studying and journey. By making a platform the place it’s straightforward to immediately work together with others around the globe and giving them the instruments to speak with one another in a joyful and enjoyable approach, we hope to do our half (nevertheless small) in fostering understanding and tolerance between all residents of the world.

    Info set forth on this information launch incorporates forward-looking statements, together with expectations concerning completion of the Transaction and the Providing, together with the anticipated use of proceeds from the Providing and the anticipated time limit of the Providing, in addition to statements concerning the anticipated capability of the Mining Facility and the Firm’s perception that such capability will make the Firm the biggest devoted Dogecoin/Litecoin mining facility on this planet, statements concerning the anticipated proportion of the world’s hashrate the Mining Property would symbolize and the Firm’s perception that such proportion would make it the world’s third largest Dogecoin/Litecoin miner. These statements replicate administration’s present estimates, beliefs, intentions, and expectations; they don’t seem to be ensures of future efficiency. Hey Pal cautions that every one forward-looking statements are inherently unsure and that precise efficiency could also be affected by numerous materials components, lots of that are past Hey Pal’s management. Such dangers and uncertainties are described in Hey Pal’s annual and interim monetary statements out there on www.sedar.com. Though Hey Pal is at the moment producing revenues, Hey Pal stays within the development stage and such revenues are but to be worthwhile. Accordingly, precise, and future occasions, circumstances and outcomes might differ materially from the estimates, beliefs, intentions, and expectations expressed or implied within the forward-looking data. Besides as required underneath relevant securities laws, Hey Pal undertakes no obligation to publicly replace or revise forward-looking data.

    THE CSE HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

    Hey Pal Worldwide
    www.hellopal.com
    p 604-683-0911

    Supply: Hey Pal Worldwide Inc.

    SOURCE Hey Pal Worldwide Inc.

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