Overstock.com today disclosed that the US Securities and Exchange Commission (SEC) is investigating the USD 250 million initial coin offering (ICO) of its blockchain subsidiary, tZero and that it has updated its ICO arrangements after a presale that raised over USD 100 million.
Investors now have the opportunity for a refund or further participation, as the company strives to meet SEC regulations.
In what the company calls the Subsequent Sale Period, investors can buy the rights to acquire /tZERO tokens, subject to lengthy regulatory requirements, in a process facilitated by US-based SaftLaunch, and regulatory ICO platform StartEngine.com (StartEngine).
The tZERO tokens are sold through Simple Agreements for Future Equity (SAFEs) at USD 10.00 per tZERO token, according to the press release. US investors will only be permitted participate if they are accredited, as defined in the Securities Act.
As of March 1, 2018, tZERO said it entered into SAFES with some 1,100 Purchasers for approximately USD 114.6 million of Tokens, of which USD 100.6 million has been funded. tZERO also extended the offering until May 14.
Investors who executed a SAFE on or prior to today, may rescind it and receive a full refund until March 8, 2018, the press release said.
The UK’s FT reported that Overstock, dropped 10 percent as news of the SEC’s request for details of the tZero ICO emerged.
Further details of tZero’s updated offering appear here: https://www.sec.gov/Archives/edgar/data/1130713/000110465918013731/a18-7242_1ex99d1.htm
Website link t0.com
image: by U.S. Government [Public domain], via Wikimedia Commons
