IOT Group Limited announced that it has commenced development of a Blockchain strategy to gain an exposure to this rapidly developing Internet of Things sector.
As an initial step in this Blockchain strategy, IOT has signed a binding agreement to partner with Hunter Energy Pty Ltd (www.hunterenergy.com.au). Subject to the satisfaction of certain conditions precedent, Hunter Energy has granted IOT the right to establish a proposed “Blockchain Applications Complex” (BAC) behind a grid and directly into a power station. A summary of the terms of the Agreement are set out in the Annexure to this Announcement.
Hunter Energy is currently working to recommission an existing power station in the Hunter Valley and to acquire all of the associated assets, with a target date to commence generation of Q1 – 2019. If this is successfully achieved, IOT may be able to obtain power at wholesale cost, which will assist clients to operate and manage their Blockchain businesses on a more cost-effective basis as the cost of power is likely to be more economical. This arrangement would be a first for Australia and may entice international operations to also house their Blockchain operations at the proposed IOT BAC in the Hunter Valley, approximately 2 hours from Sydney.
Subject to successful completion of the transaction with Hunter Energy and IOT locating its proposed Blockchain services and infrastructure business at the Hunter Energy power station, it would have direct access to power at wholesale cost and without the additional charges and costs associated with power transmission, including grid costs, poles and wires, and electricity retailer margins.
To develop revenue streams in Blockchain, IOT has incorporated IOT Blockchain Advisory Service Pty. Ltd. (A 100% owned subsidiary of IOT Group Limited) and will seek to partner with Blockchain specialists to monetise the Blockchain opportunities in light of the proposed IOT Blockchain Applications Centre.
IOT has also incorporated IOT Blockchain Pty Ltd as a 100% owned subsidiary of IOT, to develop the BAC Strategy, which includes developing the above IOT Blockchain complex within the Hunter Energy power station.
IOT is also currently in negotiation with a major data complex builder/developer and service provider, to co-locate a data complex at the Hunter Energy site. IOT’s intention isthat buildout costs and development costs of the proposed BAC and data centre would be borne substantially by a third-party developer, so as to minimise costs to IOT to develop the BAC.
IOT is also negotiating with suppliers to deploy Australia’s first BAC to facilitate various Blockchain based applications at the Hunter Energy power station, in the event that the above conditions precedent are satisfied and Hunter Energy is able to successfully recommission the power station and acquire all of the associated assets.
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