Connect with us

GSR Capital to Invest in tZERO at $1.5 Billion Valuation

mm

Published

 on

  • Up to $270 million in tZERO equity (at $1.5 billion post-money valuation)
  • $30 million purchase of tZERO Security Tokens from Overstock.com
  • Up to $104.55 million in shares of parent company Overstock.com common stock

SALT LAKE CITY, Aug. 09, 2018 (GLOBE NEWSWIRE) — Overstock.com, Inc. (NASDAQ:OSTK) and t0.com, Inc. (“tZERO”), announce that the companies have both signed term sheets with GSR Capital, a Hong Kong based private equity firm, to invest up to $374.55 million in exchange for common equity in blockchain subsidiary tZERO and common equity in Overstock.com. Overstock and GSR Capital have also entered into a purchase agreement pursuant to which GSR Capital will purchase $30 million in tZERO Security Tokens from Overstock.

As part of the term sheet agreement, GSR Capital will purchase up to 3.1 million shares of OSTK common stock at a five percent discount to the closing share price on August 1, 2018. GSR Capital will also invest up to $270 million for up to 18% of tZERO’s equity at a valuation of $1.5 billion (post-money). Additionally, pursuant to a purchase agreement, GSR Capital will purchase from Overstock $30 million in tZERO Security Tokens. These tZERO Security Tokens were purchased by Overstock during the recently-closed tZERO Security Token Offering in a non-cash transaction in which Overstock forgave $30 million in tZERO intra-company debt. GSR’s Security Token purchase agreement replaces the GSR letter of intent previously announced on June 29, 2018.

The equity transactions are subject to definitive documentation and other customary closing conditions. They also provide GSR Capital with certain rights to allocate a portion of the investments to third-party designees.

“We are honored to have GSR Capital as a strategic investor,” said tZERO CEO Saum Noursalehi. “The tokenization of securities has the potential to disrupt global capital markets responsible for moving hundreds of trillions of dollars. Together with our partners, we will globalize our blockchain-based platform, bringing more efficiency, liquidity, and trust to capital markets.”

“GSR Capital has the prescience to understand the disruptive power of blockchain capital markets,” said Patrick M. Byrne, founder and Chairman of tZERO, and founder and CEO of parent company Overstock.com. “They are aligned with our vision for the future of capital markets built upon the speed, trust, and security of the blockchain. And most importantly, they think big, and want to help us scale this vision globally as quickly as possible.”

“GSR Capital is very excited to partner with tZERO in its effort to expand the global footprint for blockchain-enabled asset trading including stocks, bonds, commodities, etc. We have a long-term view on how we want to scale this platform on a global basis,” said GSR Capital’s Chairman and founder, Sonny Wu.

About Overstock.com

Overstock.com, IncCommon Shares (NASDAQ:OSTK) / Series A Preferred (Medici Ventures’ tZERO platform: OSTKP) / Series B Preferred (OTCQX:OSTBP) is an online retailer based in Salt Lake City, Utah that sells a broad range of products at low prices, including furnituredécorrugsbedding, and home improvement. In addition to home goods, Overstock.com offers a variety of products including jewelry, electronics, apparel, and more, as well as a marketplace providing customers access to hundreds of thousands of products from third-party sellers. Additional stores include Pet Adoptions and Worldstock.com dedicated to selling artisan-crafted products from around the world. Forbes ranked Overstock in its list of the Top 100 Most Trustworthy Companies in 2014. Overstock regularly posts information about the company and other related matters under Investor Relations on its website, http://www.overstock.com.

About tZERO

t0.com, Inc. (“tZERO”) is a majority owned subsidiary of Overstock.com, focusing on the development and commercialization of financial technology (FinTech) based on cryptographically-secured, decentralized ledgers – more commonly known as blockchain technologies. Since its inception, tZERO has pioneered the effort to bring greater efficiency and transparency to capital markets through the integration of blockchain technology.

About GSR Capital

GSR was founded in 2004 by Sonny Wu and Richard Lim. Today, “GSR Ventures”, “GSR United Capital” and “GSR Capital” are three independent yet complementary teams set up by the partners in 2016 with the aim of sector leadership and going global with unique investment strategies and resources. GSR Capital has offices in Beijing, Hong Kong and the USA.

O, Overstock.com, O.com, Club O, Main Street Revolution, and Worldstock are registered trademarks of Overstock.com, Inc. O.biz and Space Shift are also trademarks of Overstock.com, Inc. Other service marks, trademarks and trade names which may be referred to herein are the property of their respective owners.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include all statements other than statements of historical fact. Additional information regarding factors that could materially affect results and the accuracy of the forward-looking statements contained herein may be found in the Company’s Form 10-Q for the quarter ended March 31, 2018, which was filed with the SEC on May 8, 2018, and any subsequent filings with the SEC.

Media Contact:

pr@overstock.com

Investor Contact:

ir@overstock.com

SOURCE: Overstock.com, Inc.

GSR Capital to Invest in tZERO at $1.5 Billion Valuation

Source: Overstock.com, Inc.

Referenced Stocks: OSTBPOSTK

Security Token News

CoinList Founder Andy Bromberg Discusses Security Token Trends

mm

Published

on

CoinList Founder Andy Bromberg Discusses Security Token Trends

The security token sector continues to be a hot button issue amongst the crypto community. This month, CoinList founder Andy Bromberg took some time to discuss the importance of these tokens, and how the coming months might play out. Unexpectedly, Bromberg had mixed feelings on the market’s trajectory.

In a recent interview, Bromberg pointed out some of the major issues facing the security token sector. He believes that the lack of clear regulations is the main factor deterring large scale adoption. Businesses are still unsure of what to think of this new crowdfunding strategy. The lack of transparency from regulators leaves many potential blockchain investors with unanswered questions.

Andy Bromberg via Twitter

Andy Bromberg via Twitter

More Guidance

Recognizing the need for more clarity in the space, the SEC issued multiple statements this year. These posts are an attempt by the SEC to help business owners understand the classifications of each type of token, and what regulations it falls under. Most recently, the SEC released a full guidance that covers each token class in detail.

STO Regulations Evolve

When STOs first emerged, many businesses saw these tokens as a cheaper and quicker alternative to traditional securities. At that time, the market lacked any regulatory structure. Businesses were able to issue tokens at will.

Nowadays this is no longer the case. The SEC recently stepped into the space in a major way. As a result, numerous businesses faced backlash for issuing securities illegally. Consequently, the STO market slowed until recently.

It Takes Time

When asked about the markets adoption rate, Bromberg was quick to let people know there is still a lot of time before STOs make it to the mainstream. The savvy crypto advocate noted that it could be years still until STOs gain enough traction to become a major crowdfunding strategy.

CoinList

CoinList entered the market in 2017 with the goal of providing financial services to next-gen tech firms. The company has headquarters in New York and offices in San Francisco. Notably, the firm has fewer than 50 employees according to Crunchbase.

CoinList offers clients advisory services regarding blockchain-based investment strategies. As the President of CoinList, Bromberg is uniquely positioned to understand the sector’s demands. His company hears the concerns of both investors and service providers. Discussing the issues, Bromberg described how there is little incentive for companies to make the shift to the crypto ecosystem at this time.

Bromberg feels that in order for companies to have confidence in these new systems, there needs to be a clear legal framework that doesn’t detract from the advantages of blockchain technology. Basically, legislators need to fully understand the advantages of blockchain technology in order to structure regulations that enable the tech to function at peak performance levels.

CoinList STOs – A Bumpy Road Ahead

The overall tone of Bromberg is one of a man who fully understands the complicated scenarios that play out in the cryptospace. His ability to point out these shortcomings is sure to help CoinList remain a dominant player in the future.

Spread the love
Continue Reading

Security Token News

Polymath Partners with QRC Group- Eyes Asian Markets

mm

Published

on

Polymath Partners with QRC Group- Eyes Asian Markets

Asian companies looking to host an STO in the future just got a powerful alley. The token issuance platform Polymath announced a strategic partnership with one of Asia’s most successful STO consulting firms – the QRC Group. The partnership strengthens Polymath’s presence in the region. Also, it provides future STOs with the added guidance needed to make their crowdfunding campaigns a success.

News of the strategic partnership first broke via a Polymath blog post. In the post, the firm discusses Polymath’s goal to make token issuance as easy as possible. Notably, providing companies access to valuable third-parties is an integral part of Polymath’s all-inclusive strategy.

QRC Group

The QRC Group has an excellent reputation as an established STO advisory in the Asian marketplace. This Hong Kong-based firm provides companies with a plethora of STO-related services such as turnkey issuance. Additionally, QRC provides end-to-end solutions for STOs, including access to regulated secondary market trading.

QRC Group via Homepage

QRC Group via Homepage

Speaking on the developments, the CEO of the QRC Group, Shoga Ishida described the partnership as an “important milestone” for his firm. Ishida pointed out Polymath’s ideal position in the market. He then explained how QRC plans to help businesses seeking more guidance. According to the post, QRC will offer consultation in:

  • Legal
  • Compliance
  • Token issuance
  • Technical infrastructure

Currently, QRC hosts a variety of blockchain-related programs. These run the full scope of the sector ranging from production and investment services, all the way to identity verification platforms. Additionally, the company has a native multi-currency STO wallet capable of storing over a thousand different tokens in the works.

International Standards

Notably, QRC continues to push for international STO standards for the Asian and Southeast Asian markets. Asia plays a huge role in the crypto market. QRC believes that standards are needed in order for the STO market to reach its full potential in the region. Importantly, businesses need this regulatory framework in place before considering STOs to be an attractive alternative to the status quo.

The QRC Group currently works with multiple universities including Taiwan Tech and the University of Malaya. These programs study the effects of blockchain technology, and how it relates to the digitization of the global markets.

Polymath on QRC Group Services

Polymath’s Head of Tokenization, Graeme Moore also took a moment to describe why the QRC Group was the perfect addition to the Polymath ecosystem. He explained why connecting high-quality service providers with valuable business resources, is critical for the developing STO space.

Polymath via LinkedIn

Polymath via LinkedIn

Partnerships

Polymath continues to expand its network. The firm made headlines numerous times this year including in June when it partnered with Ethereum co-founder, Charles Hoskinson on the Polymesh project. Polymesh is a separate blockchain designed specifically for compliant tokens.

Polymath – STO Pioneers

Polymath’s expanding network is just one example of how STO providers plan to bridge the knowledge gap between businesses interested in hosting STOs, and providers of these services. The addition of the QRC Group provides the network with a host of valuable resources. You can expect to see these services play a major role in Polymath’s future token issuances.

Spread the love
Continue Reading

Security Token News

BaFin Approves Germany based STO Platform by Black Manta Capital

mm

Published

on

BaFin Approves Germany based STO Platform by Black Manta Capital

Licence Approval

In a process that took roughly 9 months, Luxembourg based, Black Manta Capital, was awarded licensure to operate an STO platform within Germany. This licensure was provided by regulatory body, BaFin.

This development moves the company one step toward their self-described mission of setting “a global standard for Security Token Offerings (STO).”

In their release, the company hinted towards a launch date, stating,

“The operative start of the investment platform with the first Token Offerings is planned for early Q4/2019.”

STO Platform

The approval received allows for Black Manta Capital to offer clients services surrounding security token offerings. Black Manta Capital has indicated that they intend for this platform to function as a comprehensive offering – meaning that they will provide clients all the necessary services from start to finish, through the tokenization process.

The act of tokenization involves selling, creating, and distributing digital securities which represent ownership of a variety of assets. These assets may range from cars, to art, to equity within a company, and anything in between. As these digital assets are securities, their creation and distribution is only possible when adhering to laws enforced by typical regulatory bodies, such as BaFin.

The Competition

The STO platform to be offered by Black Manta Capital is expected to face stiff competition, as Europe is quickly becoming a hot bed for companies with similar ambitions. The following are a few of those expected to fit this role.

Commentary

Upon making their announcement, Managing Partner of Black Manta Capital, Christian Platzer, took the time to comment. The following is what he had to say on the matter.

“Tokenization in the core financial field of securities will – for sure – bring paradigmatic change to the global financial markets.” – “While Black Manta Capital Partners want to be ‘boutique’ in its beginnings and run ‘handpicked’ STOs only, our strategy is global from day one: the first step is to link Europe and Asia on one blockchain-based investment platform. Therefore we look already today into Singapore.”

Black Manta Capital

Black Manta Capital is a young company which specializes in tokenization services. Operating out of Luxembourg since 2018, the company has plans for eventual expansion across various continents.

Managing Partners, Christian Platzer and Alexander Rapatz, currently oversee company operations.

BaFin

BaFin is a leading financial supervising authority across Europe. With over 2,600 employees, this regulatory body oversees a variety of industries ranging from finance, to banking, insurance, and more.

The organization has been operational since being founded in 2002.

In Other News

Today’s announcement is not the first time that BaFin has provided licencing to outfits partaking in the digital securities sector. The following articles demonstrate a pair of other companies that have also been successful in this respect.

BitBond Gains Approval of BaFin to Host Security Token Offering

Fundament Group to Issue €250 Million in Security Tokens backed by German Real Estate

Spread the love
Continue Reading