Blockport, a social crypto trading platform, today announced that it plans to launch a multi-stage security token offering (STO) starting in March 2019. The company’s goal for the token offering is to raise at least 15 million EUR for further company expansion. Blockport intends to use any funds raised in the STO for establishing operations in the U.S. and other countries, expanding its social brand in the European retail market and acquiring licensing for fiat-to-crypto banking services following massive user growth in 2018.
To be held on the Tokeny security token issuance platform, the Blockport STO will include separate offerings to (i) accredited investors in the United States and (ii) to participants in Europe and other jurisdictions.
The success Blockport experienced with its beta launch made the social trading platform a popular crypto exchange in Europe. The platform also generated significant interest in the U.S. during 2018, with 40 percent of Blockport’s web traffic coming from the United States. In order to enter the U.S. market, however, Blockport will require significant resources for securing the proper licensing.
The team chose an STO to fund their expansion plans because of their strong belief in cryptocurrency as the foundation of innovation in global finance. This STO is not Blockport’s first token offering. The company held a successful utility token sale in 2018 to help fund development for the crypto exchange. That token – Blockport Token (BPT) – powers the platform’s social trading features. The upcoming STO seeks to deliver additional value to investors in the form of an indirect participating interest in Blockport and will help Blockport pursue its goals for growth, all while maintaining the company’s values and support for the crypto community.
The first round of the offering is scheduled for March 2019, with a goal of raising 5 million EUR in the European Economic Area and the United States. Blockport intends to leverage an exemption from the requirement of publishing an approved prospectus for the first round.
Shortly after the first round concludes, the second round of fundraising will be planned. Blockport intends to engage in concurrent offerings in the United States under Rule 506(c) under Regulation D under the United States Securities Act of 1933 (Securities Act) to accredited investors and a separate offering under Regulation S under the Securities Act to investors in Europe and other countries. Blockport aims to bring the total amount raised to 15 million EUR by the end of the second round in June. A third round of the STO is planned, but the timing and structure will depend on Blockport’s growth in 2019 as well as market conditions. In total, with all three rounds combined, the crypto exchange aims to raise 30 million EUR.
Participants in the STO will receive Blockport Securities (BPS). Each security token represents a ‘depositary receipt’ or ‘certificate’ for a corresponding share and, thereby, an (indirect) ownership stake in Blockport, entitling holders to the dividends paid out on the underlying share if and when they are declared. These tokens will not, however, give holders voting rights, as these vest with the intermediary issuing the BPS’s who also acts as legal owner and administrator of the underlying shares in Blockport.
“Raising funds through an STO allows us to share company profits with our investor community in a standardized and transparent way, by offering them a stake in the company’s future and vision. As a company operating in the blockchain industry, we’re very excited to be one of the first exchanges in Europe to be launching an STO!”
– Kai Bennink, Founder and Chief Strategy, Blockport