Overstock’s tZERO, a blockchain-oriented company, announced on Friday that it had signed a letter of intent (LOI) with Hong Kong-based venture capital firm GSR Capital. According to the LOI, GSR will take part in tZERO’s security token offering (STO) by investing $160 million. During the STO event, tZERO will sell its security tokens pursuant to the Simple Agreement for Future Equity (SAFE). The price per token will be $10, and the STO will be extended to August 6, 2018.
An STO is a new method to raise funds that is similar to initial coin offering (ICO) but is more compliant with the SEC regulations and operates with digital securities rather than just coins.
As of Thursday, June 2018, tZERO had prepared SAFEs worth $168 million, of which about $95 million funded by selling its security tokens. About 1,000 people from 30 countries took part in the STO event.
tZERO CEO Saum Noursalehi commented:
“We are overwhelmed by the support we have received from all of our investors, and thrilled to have GSR on our team as we seek to launch the world’s first security token exchange. This investment from GSR further validates tZERO’s strategy to introduce blockchain to capital markets, and this partnership will accelerate our global expansion efforts.”
tZERO executive chairman Patrick M. Byrne, also the founder and CEO of Overstock, said that he had shown a great interest in blockchain for the last year, and that tZERO aims to bring efficiency and transparency to capital markets.
“I truly believe what we are doing is historic and, while there is still much to be done, our success in this STO has given us the resources we need to see it through,” he said.
tZERO will use the funds to build a security token exchanged that was recently announced in collaboration with BOX digital Markets.
This article appeared first on Cryptovest
