ParcelPal Logistics Inc. announced that it has executed a non-binding Letter of Intent with a significant data center equipment manufacturing company, pursuant to which ParcelPal will initiate its new 2024 expansion plan to increase its warehousing footprint and related revenues. To initiate this business line, company plan to lease one U.S. based hybrid facility to start, with the plan to expand into additional similar U.S. based facilities. In connection with the initial facility, and pursuant to the term of the LOI, this client will sublease space from the Company, and be responsible to deliver and setup up to 10,000 antminer machines in each hybrid facility.

ParcelPal will provide space, utilities, personnel and other necessities to operate this business line in exchange for a fee to be set forth in the definitive agreement, for which the minimum payment to ParcelPal will cover all costs, plus an arbitrage based profit spread. Pursuant to the terms of the LOI, and subsequent definitive agreement, ParcelPal will retain 75% of the net revenues generated at each facility company arrange and operate for this business line. The company anticipates signing a definitive agreement for the first facility in the next 30-45 days upon, and subject to, completing full diligence, entry into a lease agreement, retention of necessary technical and personnel support and entry into a utility contract in-line with the energy needs of the facility, as well as further analysis on pricing, legal and regulatory compliance matters, and customary closing terms and conditions.

Upon entry into such definitive agreement, along with the facility lease agreement and other material items related thereto. Assuming completion and initiation of operations at this initial facility, the Company plans to expand the initial phase of this business to identify additional compatible crypto-mining capable facilities to optimize and increase revenues based on an increased number of housed antminer machines for additional contract-based volume revenues.