Upgrading H2O to H3O

H3O Security Token -

Summary

Dear Community,

the point of decision is coming closer whether to redeem your H2O tokens or change them into H3O security tokens later on. To give you a short overview about your options, here is a summary of all information we can release so far. As soon as the application process for the capital market prospectus is finished and approved, we are able to make a public offer of H3Os providing all details you need for a diligent investment decision.

Changing H2O to H3O Security Tokens

First of all, once the capital market prospectus is approved, there will be no minimum for changing H2O tokens into H3O tokens, so you can upgrade any amount of tokens you would like to change. The exchange rate will be 1:50, meaning that for 1 H2O you will get 50 H3O tokens.

The main sale of the H3O token will start after the pre-sale probably in Q2 2018. The minimum investment in the pre-sale is USD 200,000. H3Os will be traded on crypto-exchanges, at the moment we are negotiating with suitable ones.

The H3O token belongs to a new class of tokens, it will be neither a utility token nor a voucher, but a security token based on a participation right (Genussrecht) for which we are in the process of creating a capital market prospectus according to the European capital markets law. The participation right will grant token holders a share in the profits and losses and the company value of Hydrominer.

The special feature of the H3O token will be the possibility to participate in Hydrominer’s growth in value. There will be the option for dividend payments to token holders and a tag-along right will be implemented. If the shareholders sell their shares of the company, (up to) 80 % of the profits will go to the H3O token holders.

The next step after the H3O token sale is to convert the H3O tokens into tokenized shares when Hydrominer is listed at a stock exchange. Currently, the team looks at the AIM (a segment of the London Stock Exchange). Then, H3O token holders will become real shareholders with all rights (at a discount to the IPO price).

The basic thought behind this token is to create an instrument similar to a share that enables shareholders and H3O token holders to be aligned in their interests from the start. Token holder as well as the team are striving towards the most profitable sustainable mining operation.

With the capital raised in the H3O token sale, Hydrominer will be able to position itself at the forefront of the green crypto mining business through expanding significantly, investing into hardware improvements to maximize the output of the hardware and through adopting Hydrominer’s proprietary cooling solution. We will see in the near future a wave of security tokens coming to the market, because these tokens reduce the risk of the investors and grant them rights that they don’t have with utility tokens or vouchers.

How will early investors be rewarded?

H2O token holders will get the best deal for the H3O token when they change their tokens, even better than the H3O pre-sale investors. They will get 50 H3O tokens for 1 H2O since it is important to us to reward our first investors who took the risk and supported us from the beginning. Every investor will know exactly what they get, a groundbreaking form of investment in clean energy crypto currency mining.

H3O Pre-Sale

In the H3O pre-sale the tokenized ‘H3O’ participation rights can be subscribed with a minimum nominal value of USD 200 000 at a price of 70 % of the nominal value (i.e., a purchase price of USD 140 000). The offer of these participation rights is made under recourse to § 2 para (1) item 9 Austrian Capital Markets Law without prior publication of an approved capital market prospectus. A description of the offer and associated risks will be soon available on the hydrominer.org website.

The H3O tokens have not been and will not be registered under the US Securities Act of 1933. They were not approved for trade for the purposes of the US Commodities Exchange Act of 1936. The H3O token may not be offered, sold or transferred within the United States or on behalf of US Persons, only to accredited investors under the US Securities Act, Regulation D, Rule 506, i.e. investors with a net worth of more than $1m, excluding their primary residence, or with a net income of more than 200 000 US$ (if married a combined income of 300 000 US$).

Mining Portal

The final release date is this Saturday, 24th of February at 12pm (noon). Remember that your tokens are gone when you use them for mining, the mining contract is a binding contract over 2 years. The H2O tokens that were not sold during the first ICO will get burned. For any questions that occur during the registration process, please use the ticket system on the shop website.The team will also be around in the telegram group to guarantee a smooth mining start.

Thank you for your patience and support.

HydroMiner Team