Letter of Intent Signed with Strategic Distribution Partnership

We are pleased to announce the signing of a Letter of Intent (LOI) to establish a strategic distribution agreement aimed at expanding the market reach of our proprietary mining hardware and hosting services, with the primary goal of maximizing revenue from each unit sold. This agreement lays the foundation for a long-term partnership with one of our clients, seamlessly transitioning into follow-up purchase orders once the initial purchase agreement has been fulfilled. This collaboration is designed to enhance accessibility, optimize sales operations, and drive revenue growth for our advanced Scrypt ASIC technology.

Under the proposed terms, our company will supply state-of-the-art mining hardware at a fixed markup, while the distributor manages resale to their end clients. Additionally, the partnership will incorporate a profit-sharing model designed to optimize revenue capture during periods of heightened market demand. This structure ensures that our company benefits from price volatility in the resale market during bull cycles while securing a stable revenue stream during bear markets, further strengthening our hosting services. The agreement remains adaptable to evolving market conditions, providing both flexibility and long-term sustainability.

Ben Miklozek, CFO, comments, "This marks an industry first, redefining how business is conducted by diverging from the traditional model to maximize revenue per unit sold."

The terms outlined in this LOI serve as the basis for a final distribution agreement, which will take effect upon the fulfillment of the client’s initial purchase order.

For inquiries or further details, please contact post@lokotech.no.