Letter of Intent Signed with Strategic Distribution Partnership

10 Feb 2025 09:50 CET

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.

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