SEFtoken, a digitized covered warrant issued by a US corporation, which may be exercised by SEFtoken holders for the conversion into shares of the underlying asset, is kicking off the year with their Security Token Offering (STO), being the first company to issue a compliant digital security with “covered warrant” structure – a unique method which paves the way for asset owners around the world to issue compliant US digital securities.
“The use of the covered warrant structure in the digitized security token era of 2019 introduces a critical structural enhancement to the industry overall and we are pleased to be able to grant potential investors with actual asset ownership via SEFtoken,” said Brian Price, Director of SEFtoken, Inc.
The SEC compliant concurrent Regulations D and Regulation S capital raising was launched via Securitize, an end-to-end digital security issuance platform and Digital Securities protocol.
The covered warrant provides a SEFtoken holder the right to convert the warrant into equity shares via compliant digital security offering for the underlying asset, which is a licensed and regulated Financial Market Infrastructure.
“Through our SEFtoken structure, we are committed to providing investors with what they are demanding, namely transparent and compliant ownership of a credible asset. If the offering hard cap is met, that ownership means SEFtoken holders will own 47 percent of the underlying asset and as a block will become the largest shareholder of the asset,” said Price.
SEFtoken’s level of disclosure, compliance and transparent process provides a new high standard for digital securities offerings.
“We at Securitize are very excited to kick start the new year by helping SEFtoken issue the first-ever covered warrant structured digital securities. Innovative structures like these help showcase blockchain technology’s potential to unlock illiquid assets in a compliant way for asset holders,” said Carlos Domingo, Co-Founder, and CEO of Securitize.