Link Global Technologies Announces Financial Results for the Second Quarter of Fiscal 2021

VANCOUVER, BC / ACCESSWIRE / July 30, 2021 / LINK GLOBAL TECHNOLOGIES INC. (CSE:LNK)(FRA:LGT)(OTC:LGLOF) (“LINK” or the “Company”), an innovative power and infrastructure solutions provider for Bitcoin mining and data hosting operations, has released its financial results for the six months ended May 31, 2021.

Steve Jenkins, Chief Executive Officer of Link Global, comments, “we are pleased with our financial results and revenue achievements to date. Our successes are reflective of the commissioning of various sites. As additional megawatts come online, commissioned for mining operations, our revenues and client base will continue to grow, along with our asset base. Link has been heavily investing in capital infrastructure and will continue to build our technical and operating expertise, therefore, maximizing the operational efficiencies for clients and Link’s self-mining operations. Commissioning and optimizing the sites is our key focus. While other companies have undertaken the grid or small tie-ins to existing natural gas assets, Link operates on an industrial scale on remote sites. The local benefits include employment opportunities and technical training for communities, which fits perfectly with Link’s ESG goals.”

20201 Q2 HIGHLIGHTS (All figures expressed in US dollar, unless otherwise stated)

As at May 31, 2021, the Company has total assets of $12,999,663, including $3,557,187 Property & Equipment and $6,991,765 Right-of-Use Assets, representing 151% growth in total assets compared to the prior year ended November 30, 2020. The increase in assets reflects the significant investments in capital infrastructure for the various power-generating sites housing the Company’s clients’ Bitcoin mining operations.
For the six months ended May 31, 2021, the Company recognized revenues of $1,525,732, with a respective cost of sales of $790,836, and realized gross profit of $734,896 (or 48% gross margin). The six-month revenues for the second quarter of fiscal 2021 represent a 699% increase compared to the same period in the prior year. The increase in revenues is a result of the commencement of hosting operations. The Company believes its gross margin will improve as additional clients come online.
For the six months ended May 31, 2021, operating expenses were $3,432,326 compared to $493,940 incurred during the same period in the prior year. The increased expenditures reflect the increased business activity to commission the various power-generating sites, including hiring third-party contractors and supplies. In addition, the Company continued to invest in marketing and investor relations to enhance the profile and presence of the Company in the capital markets. This investment resulted in the successful completion of several rounds of financing, totalling $3,157,390. These proceeds were re-invested in capital infrastructure and commissioning the various power generating sites.
As of May 31, 2021, the Company has $2,450,711 in current assets, including $887,640 in cash, and $41,762 in digital currencies. As at May 31, 2021, the Company had a working capital deficiency of $5,617,950 due to the timing of collecting receivables and build-up of payables.
For the three and six months ended May 31, 2021, the Company realized Net Profit (Loss) of $925,147 and $(3,422,476), respectively.

Selected financial and operating information should be read in conjunction with Link’s unaudited condensed interim financial statements and related Management’s Discussion and Analysis for the three and six-month periods ended May 31, 2021, available at www.sedar.com.

All financial information in this press release is prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

2021 Q2 Operating Highlights

During the six months ended May 31, 2021, the Company secured sites for an additional 50 MW of power-generating assets and continued to commission the existing 18.75 MW into commercial operations. The additional 50 MW has the ability to expand to 100MW in early 2022
Link recruited and hired a senior project manager to oversee the new power sites’ rapid deployment and anticipate bringing on the first power to the new sites in late September 2021.

Highlights Subsequent to 2021 Q2

On June 28, 2021, the Company signed an agreement with Atlas Mining Investments Ltd. (‘Atlas’) for a 40 MW turnkey solution hosting 12,000 of Atlas’ latest generation of Bitcoin miners. The first 40 MW is set to be commissioned in the late third quarter through the fourth quarter of 2021, with an option to expand an additional 40 MW or 12,000 miners in the first quarter/second quarter of 2022. Latest-generation miners planned for installation; this adds 1.3 exahashes per second for 2021 with an optional 1.3 exahashes per second for a total of 2.6 exahashes per second for early 2022. The Atlas agreement provides for a profit-sharing model and the supply of power and infrastructure services.

Outlook

The Company’s long-term plans are to continue to secure low-cost power-generating assets and supply its partners with smart infrastructure and cost-efficient power solutions for data hosting and digital mining operations. The Company has 18.75 MW of power generation made operational. The Company’s goal is to move closer to 100 MW of power by the end of 2021.

Most recently, in May 2021, China banned financial institutions and payment companies from providing services related to cryptocurrency transactions and warned investors against speculative crypto trading. It was China’s latest attempt to clamp down on what was a burgeoning digital trading market. Under the ban, such institutions, including banks and online payments channels, must not offer clients any service involving cryptocurrencies, such as registration, trading, clearing and settlement. In addition, China has banned crypto exchanges and initial coin offerings but has not barred individuals from holding cryptocurrencies. The ban from China serves as a positive indicator for cryptocurrency mining operations in Canada.

CAD $1.69 MILLION DEBT SETTLEMENT

The Company is also pleased to announce that it has settled total debts of approximately CAD $1.5 million, including CAD $800,000 from one of the Company’s longest and largest shareholders/supporters (see press release dated December 23, 2020, titled ‘Link Global Technologies Announces Receipt of CAD $800,000 Debt Financing to Expand its Bitcoin Mining Operations’). The original use of proceeds from the CAD $800,000 Debt Financing was used to commission a new 10 MW power site, which the Company expected to be operational during the first quarter of 2021. As mentioned above, the Company is pleased to report that over 18 MW have been commissioned into operations in 2021, and a further +50 MW is secured.

In total CAD $1,689,945 of debt has been extinguished by arms’ length third parties in exchange for 4,042,722 common shares of the Company at CAD $0.42 per share. All securities issued in the Debt Settlement are subject to a hold period expiring four months and one day from the date of issuance.

None of the securities acquired in the Debt Settlement will be registered under the United States Securities Act of 1933, as amended (the ‘1933 Act’), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This news release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.

About Link Global Technologies Inc.

Link is engaged in providing infrastructure and operating expertise for digital mining and data hosting operations. Link’s objectives include locating and securing, for lease and option to purchase, properties with access to low-cost, reliable power, and deploying this low-cost power to conduct digital mining and supply clean energy and infrastructure for other data-hosting services. To learn more about Link’s activities, visit us at https://linkglobal.io/.

On behalf of Link Global Technologies Inc.

Stephen Jenkins
Chief Executive Officer & Director

For more information visit http://linkglobal.io/ or contact:

Steve Jenkins
stephen@linkglobal.io
+1-877-770-6545

For investor information please contact:

info@linkglobal.io
+1-833-707-8708

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION. This news release contains ‘forward-looking statements’ within the meaning of applicable Canadian securities legislation. Forward-looking statements consist of statements that are not purely historical and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Often, but not always, forward-looking statements can be identified by the use of words such as ‘plans’, ‘expects’, ‘is expected’, ‘forecast’, ‘budget’, ‘scheduled’, ‘estimates’, ‘forecasts’, ‘intends’, ‘anticipates’, or ‘believes’, or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results ‘may’, ‘would’, ‘could’, ‘should’ or ‘might’ occur. Forward-looking statements made in this news release include, but are not limited, to: statements with respect to the Facility and the terms and potential benefits thereof;and other business plans of the Company. All such forward-looking statements are based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions based on historical trends, current conditions and expected future developments. Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. The Company cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. In the case of the Company, these risks, uncertainties, assumptions and other factors include, without limitation:; those set out in the Company’s most recent MD&A, fluctuations in the price of electricity, fluctuations in the price of digital currencies/Bitcoin, the future potential halving of Bitcoin, increases in the network difficulty rate and price of digital currencies/Bitcoin, negative changes in the level of digital currency/Bitcoin rewards per block, the securing of economic rates for the purchase of power, the opportunities for acquiring digital currency mining hardware, unanticipated changes in laws, regulations or other industry standards affecting the business of the Company, reliance on key management personnel, the Company’s ability to implement its business plan, litigation risk, stock price volatility, the effects of general economic and other factors beyond the control of the Company, and other matters that may occur in the future. Given these risks, undue reliance should not be placed on these forward-looking statements, which apply only as of the date hereof. Other than as specifically required by law, the Company undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise.

SOURCE: Link Global Technologies Inc.

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