Crypto Firm tZero Signs Letter Of Intent With GSR Capital For $160M USD Security Token Investment
Crypto Firm tZero Signs Letter Of Intent With GSR Capital For $160M USD Investment
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Overstock’s subsidiary tZERO has signed a letter of intent (LOI) with Hong Kong-based private equity firm GSR Capital to participate in tZERO’s Security Token Offering (STO).
tZERO is a Security and Exchange Commission compliant alternative trading system (ATS). Rather than depending on broker dealers to buy and sell securities, tZero works like money sender Transferwise by matching buyers and sellers in a dark pool.
In accordance with the LOI, GSR will purchase $160 million in tZERO security tokens at a price of $10.00 per token, pursuant to the Simple Agreement for Future Equity (SAFE). To accommodate the investment from GSR, tZERO’s token offering has been extended to August 6.
“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,” said tZERO CEO Saum Noursalehi. “This investment from GSR further validates tZERO’s strategy to introduce blockchain to capital markets, and this partnership will accelerate our global expansion efforts.”
In addition to the investment from GSR, as of June 28, 2018, tZERO has entered into executed SAFEs in excess of $168 million for security tokens, of which over $95 million has been already funded. Almost 1,000 people from 30 countries participated in the token sale.
“Years ago we saw the world-shaking potential of blockchain, and since then we have been methodical in building tZERO into a company that will bring great efficiency and transparency to capital markets domestically and abroad,” said Patrick Byrne, Overstock Founder and CEO and Executive Chairman of tZERO. “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.”
The news came after tZero announced its joint venture with BOX digital Markets to launch a regulated security token exchange, which will be funded by a portion of the proceeds from the token sale. The funds will also be used to bolster the human capital and team at tZERO and allow for further international expansion in the future.
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