tZERO Issues Preferred tZERO Security Tokens
October 16 2018 - 3:07PM
Blockchain Pioneer Completes Another Capital
Markets Milestone
tZERO, the global leader in blockchain innovation for capital
markets, today announced it has completed the issuance of preferred
tZERO security tokens. Tokens were issued to investors who had
fully funded signed agreements for future equity (SAFEs) prior to
the August 6, 2018 close of the company’s Security Token Offering
(STO). tZERO raised $134 million from over 1,000 global investors
during its STO.
“This is one of the first Security Token Offerings on a
decentralized public network, and was conducted in full compliance
with the U.S. securities laws,” said tZERO CEO Saum Noursalehi.
“This is an exciting milestone for tZERO, and we are even more
enthusiastic about the opportunities this will create for private
and public companies wishing to raise capital through security
token offerings, and for investors who wish to trade those
securities.”
tZERO deployed its token contract, minted its security tokens,
and issued into a tZERO custodial wallet on behalf of investors on
October 12, 2018. To ensure compliance with federal securities law
and regulations, and in accordance with the terms of the tokens
themselves, the tokens will be locked up in the custodial wallet
until January 10, 2019 (90 days after issuance). After the 90-day
period expires, tZERO intends on offering holders the opportunity
to trade tokens, pursuant to private resale transactions, with
other accredited investors on a platform that tZERO is in the
process of developing with a broker-dealer partner. In
addition, tZERO intends that new investors who are accredited will
also be able to open an account to buy tokens following the 90-day
period.
“The issuance of the world’s first public cryptosecurity, OSTKP,
in 2016 was tZERO’s Chuck Yeager moment: we broke the speed of
sound by introducing the concept of real-time trade settlement.
Today marks our Yuri Gagarin moment, where we leave behind the
confines of the known world of traditional capital markets and take
the first steps towards a new market powered by blockchain,” said
Patrick M. Byrne, tZERO executive chairman and the CEO and founder
of Overstock.com (NASDAQ:OSTK). “My humblest thanks to all the
colleagues and investors that have shared our belief in a system of
securities trading based on trust, transparency, and integrity
through cryptography-based technologies, rather than one that
relies on the mercy of middlemen who may not have the investors’
best interest at heart (and who may even, at times, be bent on
mischief).”
tZERO also plans to designate an approved trading platform by
August 6, 2019, one year after consummation of the STO, so holders
may then resell their tokens to non-accredited investors. tZERO
also plans to register the securities to enable secondary trading
in more robust trading environments, such as the domestic (USA)
exchange it is building in partnership with BOX Digital Markets, as
well as international securities exchanges.
tZERO was founded in 2014 with the goal of utilizing blockchain
technology to revolutionize Wall Street so that financial processes
could become less beholden to traditional institutional market
structures and the mischief and financial instability they have
been known, on occasion, to permit. tZERO is a portfolio company of
Medici Ventures, Overstock.com’s blockchain subsidiary. For more
information on tZERO, please visit: tZERO.com.
Media Contacts:tZERO Alexandra
Sotiropoulos, +1-212-754-5615 asotiropoulos@intermarket.com
Overstock.com Overstock Public Relations,
+1-801-947-3564 pr@overstock.com
About tZEROtZERO Group, 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 Overstock.comOverstock.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.
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 June 30, 2018, which was
filed with the SEC on August 9, 2018, and any subsequent filings
with the SEC.
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