Digital Warrant Offering
In a recent press release, SEFtoken has announced their intention to host an upcoming Digital Security Offering (DSO). The company is undergoing this fundraising to continue the development of their Licensed Exchange Infrastructure.
Securitize – a market leading end-to-end issuance service – will provide the services needed to undertake this DSO.
SEFtoken is offering a product that is unique from what the market has seen to date. The plan is to offer what SEFtoken refers to as a ‘covered warrant security token’. A ‘covered warrant’ refers to the ability for an investor to purchase a security at a specific price. This purchase must take place prior to a predetermined deadline.
Each token is representative of a warrant, which can later be converted into equity through use of the company’s Financial Market Infrastructure.
This is a unique approach, and a first, in the world of digital securities. As it is another potential means in which blockchain technology can be used to advance finance, many eyes will be watching the success of the product.
SEFtoken is a Delaware based company. They are a young company looking to make their mark on the industry. However, by turning to Securitize, they now have the means to successfully launch their world’s-first ‘covered warrant security token’.
Director of SEFtoken, Brian Price commented on the product in their press release. He stated, “The use of the covered warrant structure in the digitized security token era of 2019 introduces a critical structural enhancement to the industry overall and we are pleased to be able to grant potential investors with actual asset ownership via SEFtoken.”
He further added that, “Through our SEFtoken structure, we are committed to providing investors with what they are demanding, namely transparent and compliant ownership of a credible asset. If the offering hard cap is met, that ownership means SEFtoken holders will own 47 percent of the underlying asset and as a block will become the largest shareholder of the asset.”
Securitize is based out of San Francisco, and was founded in 2017. For companies looking to issue digital securities, Securitize offers an end-to-end solution, guiding them through the process.
Securitize CEO, Carlos Domingo, commented on the SEFtoken announcement. He stated, “We at Securitize are very excited to kick start the new year by helping SEFtoken issue the first ever covered warrant structured digital securities. Innovative structures like these help showcase blockchain technology’s potential to unlock illiquid assets in a compliant way for asset holders.”
In Other News
Securitize is shaping up to be a leader within the digital securities sector. In fact, they were the ones to coin the term ‘digital securities’, as they believe it is better representative of the described asset.
Beyond that, Securitize has caught our attention multiple times in the last month. From reporting on a $12.75 million Series A, to being major players in an upcoming conference, Securitize means business.