$BLQC BlockQuarry Announces $5 Million in Debt Cancellation, Reduces Overall Liabilities by 30%
https://www.globenewswire.com/news-release/20...by-30.html
HOUSTON, Jan. 10, 2023 (GLOBE NEWSWIRE) -- via InvestorWire -- BlockQuarry Corp. (OTC: BLQC) (“BlockQuarry” or the “Company”), a Texas-based company with commercial-stage operations in the energy and infrastructure industry focusing on cryptocurrency mine hosting and self-mining in the Southeast United States, is pleased to announce the following to its shareholders.
The Company has cancelled $5 million in debt, resulting in a 30% reduction in overall liabilities on the Company’s balance sheet. Additionally, the Company was able to extend maturity dates on its remaining notes with its largest debtholder, RB Capital Partners.
Alonzo Pierce, president and chair of BlockQuarry, stated, “I’m very excited about the substantial moves we were able to make with some of our debtholders, including our largest investor, RB Capital. These moves are a key part of our strategy to clean up our balance sheet and help maximize shareholder equity.
“Not only were we able to cancel debt but we were also able to extend the maturity date on our remaining notes with RB Capital, taking them out of default. This is important, as it will reduce the derivative liabilities that show up on our balance sheet. The Company is now in a much stronger position, and shareholder value has undoubtedly increased.”
A total of five RB Capital notes were cancelled, with a principal value totaling $4 million. All the notes cancelled were in default. The five notes had a total accrued value of nearly $410,000 in interest.
The Company also extended the maturity dates on the remaining RB Capital notes (to December 2024), reducing derivative liabilities accrued, as the notes were already in default.
The Company was also able to negotiate and cancel $525,000 in principal and accrued interest in the form of bridge loans from another debtholder.
The total value of all debt cancelled was $4,935,000 in principal and accrued interest.
Brett Rosen, managing partner of RB Capital Partners, stated, “This was a move RB Capital made to help BlockQuarry significantly reduce the debt on its balance sheet while increasing shareholder value. By cancelling millions of dollars in debt and extending the maturity date for the remaining notes, we were able to help decrease the shareholder deficit and significantly increase shareholder equity, which is a necessary requirement for a Nasdaq uplisting.
“For us, this deal was a no-brainer. We truly believe in what BlockQuarry is trying to accomplish, and we want to help in any way we can. And we look forward to more exciting developments in the months, and potentially years, to come.”
Pierce concluded, “This is a testament to our investors’ faith in our ability to execute on our vision and value proposition and the tremendous promise we see around the corner. I look forward to seeing some more significant moves from the Company in Q1 and beyond.”
All Company updates, material and nonmaterial, will only be made public via press releases, Twitter and/or via the Company’s website: www.BlockQuarry.io.
https://www.globenewswire.com/news-release/20...by-30.html
HOUSTON, Jan. 10, 2023 (GLOBE NEWSWIRE) -- via InvestorWire -- BlockQuarry Corp. (OTC: BLQC) (“BlockQuarry” or the “Company”), a Texas-based company with commercial-stage operations in the energy and infrastructure industry focusing on cryptocurrency mine hosting and self-mining in the Southeast United States, is pleased to announce the following to its shareholders.
The Company has cancelled $5 million in debt, resulting in a 30% reduction in overall liabilities on the Company’s balance sheet. Additionally, the Company was able to extend maturity dates on its remaining notes with its largest debtholder, RB Capital Partners.
Alonzo Pierce, president and chair of BlockQuarry, stated, “I’m very excited about the substantial moves we were able to make with some of our debtholders, including our largest investor, RB Capital. These moves are a key part of our strategy to clean up our balance sheet and help maximize shareholder equity.
“Not only were we able to cancel debt but we were also able to extend the maturity date on our remaining notes with RB Capital, taking them out of default. This is important, as it will reduce the derivative liabilities that show up on our balance sheet. The Company is now in a much stronger position, and shareholder value has undoubtedly increased.”
A total of five RB Capital notes were cancelled, with a principal value totaling $4 million. All the notes cancelled were in default. The five notes had a total accrued value of nearly $410,000 in interest.
The Company also extended the maturity dates on the remaining RB Capital notes (to December 2024), reducing derivative liabilities accrued, as the notes were already in default.
The Company was also able to negotiate and cancel $525,000 in principal and accrued interest in the form of bridge loans from another debtholder.
The total value of all debt cancelled was $4,935,000 in principal and accrued interest.
Brett Rosen, managing partner of RB Capital Partners, stated, “This was a move RB Capital made to help BlockQuarry significantly reduce the debt on its balance sheet while increasing shareholder value. By cancelling millions of dollars in debt and extending the maturity date for the remaining notes, we were able to help decrease the shareholder deficit and significantly increase shareholder equity, which is a necessary requirement for a Nasdaq uplisting.
“For us, this deal was a no-brainer. We truly believe in what BlockQuarry is trying to accomplish, and we want to help in any way we can. And we look forward to more exciting developments in the months, and potentially years, to come.”
Pierce concluded, “This is a testament to our investors’ faith in our ability to execute on our vision and value proposition and the tremendous promise we see around the corner. I look forward to seeing some more significant moves from the Company in Q1 and beyond.”
All Company updates, material and nonmaterial, will only be made public via press releases, Twitter and/or via the Company’s website: www.BlockQuarry.io.
