Monster Products, a US company manufacturing high-end headphones, plans to raise about $300 million in an initial coin offering (ICO). The company wants to take the legal route and has filed for approval from the US Securities and Exchange Commission (SEC).
During the ICO, the former manufacturer of Beats headphones plans to sell up to 300 million of its Monster Money Tokens (MMNY).
As a hedging method, the company will also offer 75 million common shares. If things do not go as planned, investors will be able to redeem their MMNY tokens for company shares at a ratio of four to one. However, token holders will not have any voting rights in the company.
The San Francisco-based organization intends to use the ICO funds to build the Monster Money Network - an Ethereum-based e-commerce system to be integrated with its site. Users will be able to buy products and services either with MMNY tokens or fiat money.
The network is expected to emerge in three stages, the first one focusing on the creation of a payments system. During the second stage, a private off-chain platform will be added to enable micro-transactions. Finally, the company plans to integrate the network into its current system.
Monster became popular for its Beats units from 2007 to 2012. However, the company terminated its relationship with Beats “dramatically,” according to the SEC filing. Currently, it manufactures and sells A/V cables, headphones, speakers, smartphone accessories, and screen cleaning sprays.
“Over the next five years, Monster’s business strategy is to revitalize relationships with the company’s existing retail relationships as well as target expansion into new retail venues,” the company stated in its filing.
ICOs have become a hugely popular means of raising funds. In the US, the SEC considers ICO tokens as securities, while Bitcoin is viewed as a commodity.
This article appeared first on Cryptovest
