t0.com, Inc. (“tZERO”), the fintech subsidiary of Overstock.com,
Inc. (NASDAQ:OSTK), announces the terms for its purchase of a 24
percent ownership stake in StockCross Financial Services, Inc.,
(“StockCross”), a FINRA member firm and a U.S. DTCC member Firm.
An important part of tZERO’s strategy is to buy, build or
partner in order to aggregate all necessary components to have
end-to-end ownership of its trading, clearing and settlement
platform. The investment in StockCross adds a key partner
with the custodial and clearing functionality of a U.S. DTCC member
firm to tZERO’s trading ecosystem.
“We view our acquisition of 24 percent of StockCross, and our
relationship with the Gebbia family, as another key step toward
achieving our goal of being the first fully regulated security
token trading platform,” said Joseph Cammarata, president of tZERO.
“This collaboration unlocks enormous potential and provides us with
enterprise-level economies of scale for both of our companies.”
Today’s announcement begins the strategic relationship between
tZERO and StockCross. Under the terms of the transaction, tZERO has
acquired a 24 percent interest in StockCross for $12 million.
In connection with this transaction, tZERO will receive
approximately 1.2 million shares of Siebert.
“Our vision is to bring the benefits of blockchain capital
markets to the world without imposing large switching costs on
participants in the current US National Market System. To achieve
that, we are inch-by-inch stitching together a blockchain capital
market which we intend to integrate into the current U.S. National
Market System. This investment in StockCross, a FINRA member firm
and a DTCC member firm, is a large step in that direction,” said
Patrick M. Byrne, CEO of tZERO and Overstock.com.
In a separate transaction, tZERO purchased a 1 percent ownership
interest in Kennedy Cabot Acquisition, LLC, the controlling owner
of Siebert. As a result of tZERO’s ownership in Kennedy Cabot
Acquisition, LLC, tZERO will own beneficially approximately an
additional 200,000 shares of Siebert. tZERO’s beneficial ownership
of Siebert shares will total approximately 1.4 million shares or
5.3 percent of Siebert’s outstanding shares.
About Overstock.com
Overstock.com, Inc. Common 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 furniture, décor, rugs, bedding, 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. More information
is available at tZERO.com.
About StockCross Financial Services, Inc.
StockCross Financial Services, Inc. is one of the largest
privately-owned brokerage firms in the nation. Established in 1971,
it has spent many years providing financial guidance and excellent
customer service to its clients. Branch offices are located
throughout the nation and are staffed with knowledgeable and
experienced representatives. Online investment services and phone
support offer clients around the world instant and current
information on their accounts. StockCross consistently delivers on
its full scope of offerings including fixed-income products, online
or broker-assisted equity trading, ESOS/ESOP programs across the
globe through advanced online trading capabilities, and is a
self-clearing firm specializing in fixed income securities,
outstanding customer service, and client investment choices.
StockCross is headquartered in Beverly Hills. Member FINRA | SIPC |
EST. 1971
SpecialtiesOnline Trading, Corporate Services, Fixed Income,
Equities, Institutional Trading, Capital Commitment and Market
Making, Retail Investment Services.
About Kennedy Cabot Acquisition, LLC
Kennedy Cabot Acquisition, LLC is a Nevada limited liability
company. The principals of Kennedy Cabot Acquisition have
substantial experience in the brokerage industry and are/were
affiliates of StockCross Financial Services, Inc. StockCross is a
broker-dealer member of FINRA with offices across the United
States.
About Siebert Financial Corp.
Siebert Financial is a holding company that conducts its retail
discount brokerage business through its wholly-owned subsidiary,
Muriel Siebert & Co., Inc. The firm became a member of the NYSE
in 1967, when Ms. Siebert became the first woman to own a seat on
the Exchange. In addition, in 2014 the Company began business as a
registered investment advisor through a wholly-owned subsidiary,
Siebert Investment Advisors, Inc. Siebert Financial, based on Wall
Street in New York City, serves clients through its branch offices
located nationwide and globally online. www.siebertnet.com
Cautionary note regarding forward-looking
statements
Statements in this press release that are not statements of
historical or current fact constitute “forward looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward looking statements involve risks and
uncertainties and known and unknown factors that could cause the
actual results of the Siebert Financial Corp. (the “Company”) to be
materially different from historical results or from any future
results expressed or implied by such forward looking statements,
including without limitation: changes in general economic and
market conditions; changes and prospects for changes in interest
rates; fluctuations in volume and prices of securities; changes in
demand for brokerage services; competition within and without the
brokerage business, including the offer of broader services;
competition from electronic discount brokerage firms offering
greater discounts on commissions than the Company; the prevalence
of a flat fee environment; limited trading opportunities; the
method of placing trades by the Company’s customers; computer and
telephone system failures; the level of spending by the Company on
advertising and promotion; trading errors and the possibility of
losses from customer non-payment of amounts due; other increases in
expenses and changes in net capital or other regulatory
requirements. As a result of these and other factors, the Company
may experience material fluctuations in its operating results on a
quarterly or annual basis, which could materially and adversely
affect its business, financial condition, operating results, and
stock price, as well as other risks detailed in the Company’s
filings with the Securities and Exchange Commission (“SEC”).
Accordingly, investors are cautioned not to place undue reliance on
any such “forward-looking statements.” The Company undertakes no
obligation to update the information contained herein or to
publicly announce the result of any revisions to such
“forward-looking statements” to reflect future events or
developments. An investment in the Company involves various risks,
including those mentioned above and those, which are detailed from
time to time in the Company’s SEC filings, copies of which may be
obtained from the Company or through the SEC’s website.
Notice to Investors
This communication is provided for informational purposes only
and is neither an offer to sell nor a solicitation of an offer to
buy any securities in the United States or elsewhere.
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 September 30, 2017, which
was filed with the SEC on November 8, 2017, and any subsequent
filings with the SEC.
SOURCE: Overstock.com, Inc.
Overstock.com Media Contact:Mark Delcorps, +1
(801) 947-3564pr@overstock.com
Investor Contact:ir@overstock.com
tZERO Media Contact:Alexandra
Sotiropoulos+212-754-5615asotiropoulos@intermarket.com
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