TORONTO--(BUSINESS WIRE)--Ether Capital Corporation (“Ether Capital” or the “Company”) (NEO: ETHC), a leading technology company focused on participating in the development of the Ethereum and Web 3 ecosystem, is pleased to announce a corporate update, including staking rewards to-date and an additional purchase of Ether from the partial divestiture of the Company’s position in Maker.
On December 15, 2021, Ether Capital announced it had staked 10,240 Ether, worth approximately $50 million at the time, becoming the first listed company in the world to stake such a meaningful balance of its asset base. Since then, the Company has accrued staking rewards of 53 Ether, or approximately $206,000. The Company plans to allocate additional amounts to staking and will update the market in due course.
On November 11, 2021, Ether Capital announced it was conducting a strategic review of its non-Ether assets. As part of this review, on January 19, 2022 the Company divested 766 Maker tokens (“MKR”) for gross proceeds of approximately $1.9 million. The Company also divested 5,200 Uniswap tokens (“UNI”) that it received as an airdrop for gross proceeds of approximately $99,000. In accordance with its strategy of being a net accumulator of Ether, the Company has redeployed the proceeds of the sales of MKR and UNI into Ether, adding 517 Ether to its existing Ether balance. The strategic review of the Company’s non-Ether assets is ongoing. The Company intends to divest its remaining position in Maker, which is currently 1,534 MKR, prior to March 31, 2022. The Company has begun executing purchases under its normal course issuer bid (“NCIB”) and may allocate a portion of future sales of non-Ether assets to purchases under the NCIB.
Excluding any staking rewards to-date, the Company’s current Ether balance is now 44,029, reflecting a market value of approximately $172 million. As at January 19, 2022, the gross value of the assets of the Company, consisting of its Ether and MKR balance valued as at January 19, 2022 as well as the Company's Wyre investment valued as at September 30,2021, amounted to $178 million. On a per basic common share basis, with basic common shares being those outstanding as at September 30, 2021, this represents $5.26 of gross asset value per basic common share.
“We are proud to announce these milestones to our shareholders and are looking forward to a productive year as the Ethereum ecosystem continues to mature, proof of stake merges with Ethereum’s main chain and novel use cases such as decentralized finance and the metaverse continue to grow,” said CEO Brian Mosoff. “We are as committed as ever to our net accumulator of Ether strategy and are excited to be working towards staking a larger portion of our Ether balance in due course.”
About Ether Capital Corporation
Ether Capital is a Toronto-based technology company whose long-term objective is to become the central business and investment hub for the Ethereum and Web 3 ecosystem. Ether Capital has invested the majority of its balance sheet in Ethereum’s native utility token “Ether” as a core strategic asset and intends to become a net accumulator of Ether over time. Ether Capital is focused on technology development to further expand Web 3 technologies and generate corporate value. Ether Capital’s management team and Board of Directors are comprised of crypto-natives, leading venture capitalists and capital market experts, which uniquely positions us to identify and capitalize on opportunities in the digital asset ecosystem.
The content of this document is for informational purposes only, and is not being provided in the context of an offering of any securities described herein, nor is it a recommendation or solicitation to buy, hold or sell any security. The information is not investment advice, nor is it tailored to the needs or circumstances of any investor. Information contained on this document is not, and under no circumstances is it to be construed as, an offering memorandum, prospectus, advertisement or public offering of securities. No securities commission or similar regulatory authority has reviewed this document and any representation to the contrary is an offence. Information contained in this document is believed to be accurate and reliable, however, we cannot guarantee that it is complete or current at all times. The information provided is subject to change without notice and neither Ether Capital Corporation, nor any of its affiliates, will be held liable for inaccuracies in the information presented.
The Company’s condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). The Company refers to the gross value of its assets and the gross value per basic common share, which are non-GAAP financial measures. These non-GAAP measures are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures presented by other issuers. The Company has presented such non-GAAP measures as management believes they are relevant measures of the value of the Company’s underlying assets. Non-GAAP measures should not be considered as alternatives to the information set out in the Company’s financial statements.
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements in regard to the Ethereum ecosystem. The Company cautions the reader not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Generally, but not always, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “on pace”, “anticipates”, or “does not anticipate”, “believes”, and similar expressions or state that certain actions, events or results “may”, “could”, “would”, “should”, “might”, or “will” be taken, occur or be achieved.
Forward-looking statements are based on information available to management at the time they are made, management’s current plans, estimates, assumptions, judgments and expectations. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: general business, economic, competitive, geopolitical, technological and social uncertainties; uncertainties in regard to the development and acceptance of blockchain technology (including proof of stake and Ethereum 2.0), and the Ethereum platform and anticipated timing and impact of the Ethereum network upgrade, the impact of the outbreak of the COVID-19 coronavirus on the Company, and the other risk factors discussed in the Company’s Annual Information Form dated March 25, 2021, the Risk Factors section in its most recently filed management’s discussion and analysis, the Risk Factors section in its Supplement and Base Shelf Prospectus and its other filings available on-line at www.sedar.com. Although the forward-looking information contained in this press release is based on assumptions that the Company believes to be reasonable at the date such statements are made, there can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. In addition, the Company cautions the reader that information provided in this press release is provided in order to give context to the nature of some of the Company’s future plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update or revise any forward-looking information, except in accordance with applicable securities laws.