BlockQuarry Announces $5 Million in Debt Cancellation, Reduces Overall Liabilities by 30%

Rhea-AI Summary

BlockQuarry Corp. (OTC: BLQC) has announced the cancellation of $5 million in debt, resulting in a 30% reduction in its overall liabilities. The cancellation includes five defaulted notes from RB Capital Partners, totaling $4 million, along with $525,000 in bridge loans. Furthermore, the maturity dates of remaining notes have been extended to December 2024, enhancing the company’s balance sheet. RB Capital expressed confidence in BlockQuarry’s strategic direction, highlighting this restructuring as a step toward increasing shareholder value and potential Nasdaq uplisting.

Positive

• Cancelled $5 million in debt, leading to a 30% reduction in overall liabilities.
• Extended maturity dates on remaining RB Capital notes to December 2024, improving financial stability.
• Increased shareholder value by reducing derivative liabilities and addressing defaults.

Negative

• None.

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.

About BlockQuarry Corp.

BlockQuarry Corp. is an energy and infrastructure company focused on cryptocurrency hosting and self-mining operations, with leased properties located within the Southeast United States. BlockQuarry Corp. also maintains a fleet of digital/cryptocurrency mining equipment and infrastructure.

Forward-Looking Statements

This press release may contain forward-looking statements that involve risks and uncertainties. These statements relate to future events or the Company’s future financial performance. In some cases, forward-looking statements may be identified by terminology including "could," "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" and the negative of these terms or other comparable terminology. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect the Company’s current judgment regarding the direction of its business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this report. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. Investors should refer to the risks disclosed in the Company's reports filed from time to time with OTC Markets (www.otcmarkets.com).

Company Contact:
info@blockquarry.io

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