27 Jul 2021 13:39:00
Notification on a new business operation of the Company's subsidiary
[ TRANSLATION ] Our Ref. JTS/CS-018/2564 July 27, 2021 Subject : Notification of a new business operation of the Company's subsidiary To : President of the Stock Exchange of Thailand Jasmine Telecom Systems Public Company Limited (the "Company") would like to notify that JasTel Network Company Limited ("JasTel"), a subsidiary of the Company, shall invest in the Bitcoin mining business which is its new business after prudently studying about it for a certain period of time and is convinced that this is a long-term investment that can generate new revenue to the Company. The Board of Directors of JasTel, at the meeting No.6/2021 convened on July 15, 2021 has resolved to approve the investment in Bitcoin mining business of which the investment value is 156.7 million Baht. The main equipment comprises 500 Bitcoin mining machines for which the Company has gradually placed order, aiming to complete the installation within the third quarter of 2021. The Company expects that it can continuously realize the revenue, generated by this new business. This transaction is classified as an asset acquisition of the Company under the Notification of the Capital Market Supervisory Board No. TorChor. 20/2551 Re: Rules on Entering into Material Transactions Deemed as Acquisition or Disposal of Assets and the Notification of the Board of Governors of the Stock Exchange of Thailand Re: Disclosure of Information and Other Acts of Listed Companies Concerning the Acquisition and Disposition of Assets B.E. 2547 (2004) (including any amendment thereto) (collectively, the "Notifications on Acquisition or Disposal") the size of which is equivalent to 11.66 percent by the criteria of total value of consideration, calculated based on the consolidated financial statements of the Company, ended March 31, 2021, reviewed by the Company auditor. The Company has not had any other acquisition of assets during the past 6 months so this does not fall into the criteria of acquisition or disposal of assets. However, the Company realizes it as a new progress and would like to acknowledge the Stock Exchange of Thailand (the "SET") accordingly. Based on the accounting policy, the Company shall record Bitcoins as intangible asset and revenue (at fair value as at the date of acquisition) offset by impairment of assets. These Bitcoins will be partially sold. The revenue obtained from this business in 2021 will not have significant impact on the total revenue. Currently, to operate Bitcoin mining business, an operator is not obliged to ask for permission from any agency. Moreover, it does not have to ask for permission from the Bank of Thailand either because Bitcoin has not yet been considered a currency in Thailand; thus, it is not under the regulations on currency exchange. Nevertheless, Bitcoin mining is the process of adding the transaction records to the Blockchain network. The amount of Bitcoins received depends on the total Hash Rate at that particular period that is ever changing. The company's major operating cost is electricity charge which is fixed and in line with the number of the Bitcoin mining machines. The Company is well aware that this business has risks, pertaining to certification, both by law and future regulatory agencies, and the volatility of Bitcoin exchange rate; therefore, the Company will do its best to cautiously manage such risks, preventing them from affecting its investments and the benefits of its own and the shareholders. For the additional mining capacity of 5,000 Bitcoin mining machines in the future, the Company will propose the issue for the Board of Directors' consideration. In the event that the transaction falls into any significant criteria, stipulated by the Notifications on Acquisition of Assets, the Company will proceed to comply with such criteria and accordingly inform the SET further. Please be informed accordingly. Sincerely yours, Jasmine Telecom Systems Public Company Limited. [Dusit Srisangaoran] (Mr. Dusit Srisangaoran) President ______________________________________________________________________ This announcement was prepared and disseminated by listed company or issuer through the electronic system which is provided for the purpose of dissemination of the information and related documents of listed company or issuer to the Stock Exchange of Thailand only. The Stock Exchange of Thailand has no responsibility for the correctness and completeness of any statements, figures, reports or opinions contained in this announcement, and has no liability for any losses and damages in any cases. In case you have any inquiries or clarification regarding this announcement, please directly contact listed company or issuer who made this announcement.