tZERO, the blockchain technology subsidiary of Overstock.com, announced today that its preferred equity security tokens (TZROP), which were issued in a private placement in August 2018, and which have been traded by accredited investors since January 2019, are now available to be resold to non-accredited investors, too (under Rule 144 under the Securities Act of 1933).
Investors with an account at Dinosaur Financial, LLC may trade their tZERO security tokens on the PRO Securities alternative trading system (ATS).
“Following the one-year anniversary of the close of our security token offering, non-accredited investors now have the ability to purchase and trade in our security tokens. Today marks another milestone as we further democratize access so all investors, regardless of net worth, can invest in the business opportunity of a blockchain-based capital market.”
– tZERO CEO Saum Noursalehi
TZROP provides investors with direct exposure to tZERO’s revenue growth through its quarterly dividend model. Subject to approval from tZERO’s Board of Directors and in accordance with the terms of the tokens, Delaware law, and accounting requirements, tZERO may distribute a quarterly dividend equal to 10% of tZERO’s adjusted gross revenue to its security token holders. Adjusted gross revenue is equivalent to the gross profit reported on tZERO’s financial statements. Dividends may be paid in U.S. dollars, Bitcoin, Ether or additional security tokens.
tZERO is a technology firm that was founded in 2014 with the goal of utilizing blockchain technology to revolutionize Wall Street so that financial processes no longer need to rely on traditional institutional market structures in favor of using blockchain to bolster and enhance market integrity.
tZERO is a keiretsu company of Medici Ventures, the blockchain subsidiary of Overstock.com, Inc. In 2016, tZERO provided the technology behind trading the world’s first public digital security, Overstock.com’s OSTKO (formerly OSTKP), on the PRO Securities ATS.
The highly-publicized issuance of tZERO’s security tokens in August 2018 raised approximately $134 million in aggregate consideration from over 1,000 global investors. Resales of tZERO security tokens among accredited investors commenced in January 2019. In June 2019, OSTKO, a digital preferred share of Overstock’s public security, became the second security token available for trading on the PRO Securities ATS (again, solely for investors with a brokerage account at Dinosaur Financial).