Overstock’s Blockchain Subsidiary Misses Target for $100 Million Capital Injection

Overstock blockchain subsidiary tZERO missed the target date for $100 million in investment, according to a shareholder letter.

TZERO, the blockchain subsidiary of retail giant Overstock, has missed its mid-April goal for a $100 million fund raise from Chinese investment firm GSR Capital and Singaporean private equity firm Makara Capital. The firm announced the development in a shareholder letter on April 18.

In the letter, Overstock CEO Patrick Byrne noted that while the diligence processes for both firms were going smoothly, “the parties will not have a definitive deal in place by the mid-April target.” Byrne added:

“tZERO plans to continue facilitating Makara’s diligence, but is not under any exclusivity with Makara or GSR and has retained advisors to pursue parallel alternatives.”

The $100 million target, $30 million of which constitutes a binding tZERO security token purchase agreement between GSR and Overstock, was the result of a Memorandum of Understanding signed between the firms in March.

The investment was first announced in August 2018, at which time GSR Capital intended to invest up to $404 million: $270 million for up to 18 percent of tZERO’s equity at a valuation, $30 million in tZERO security tokens from the parent company Overstock, and up to $104.55 million in shares of Overstock common stock. In today’s letter, Byrne reassured shareholders:

“I remind shareholders of the $30 million binding tZERO security token purchase agreement between Overstock and GSR…. Under that agreement, GSR has a binding $30 million funding obligation for May 6.”

In mid-January, the tZERO security token trading platform went live for secondary trading, with Dinosaur Financial Group acting as a broker-dealer. When Byrne presented a Q4 2018 earnings in March, the CEO praised the platform, stating, “Our blockchain projects are some of the most significant and cutting edge in the world, and we are just reaching the point where our products are being introduced to the public.”

Original Article

COMMENTS

By Readers$type=blogging$cate=2$count=6

Name

Analysis,498,News,2975,Press Releases,338,Sponsored,137,
ltr
item
CryptoNomus: Overstock’s Blockchain Subsidiary Misses Target for $100 Million Capital Injection
Overstock’s Blockchain Subsidiary Misses Target for $100 Million Capital Injection
https://images.cointelegraph.com/images/528_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy80OTU5ZjcwNjRlYzhiMzQ1YmRjNDYzYTU1ODI5ZjYwOC5qcGc=.jpg
CryptoNomus
https://www.cryptonom.us/2019/04/overstocks-blockchain-subsidiary-misses.html
https://www.cryptonom.us/
https://www.cryptonom.us/
https://www.cryptonom.us/2019/04/overstocks-blockchain-subsidiary-misses.html
true
4884201149675661183
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share. STEP 2: Click the link you shared to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy