Overstock.com subsidiary tZero boosted $134 million in its security token offering, the company said Thursday.
The pronouncement – revealed as part of Overstock’s second-quarter results – was paired with a discrete disclosure revealing that Hong Kong-based equity firm GSR Seat of government has agreed to invest as much as $400 million in both tZero and Overstock. TZero averred earlier this week that it had completed its token sale, while the firm originally had set a goal of raising $250 million through the present.
During an earnings call, CEO Patrick Byrne reiterated a previous demand that tZero received $100 million in commitments when it gold medal opened its token sale, saying “we did the very best we could … at the end of the day we went to Asia. In Asia it was quite different. The first three people we met … all claimed ‘we’d take $60 million’ [but] it proved extremely difficult to get money out of Asia for diverse different reasons.”
“That’s what slowed things down so much,” he disclosed, referencing multiple extensions to the company’s token sale.
Specifically, the handle would see GSR acquiring up to $270 million in tZero equity – at a valuation of $1.5 billion – as fount as up to roughly $104 million in Overstock shares. As well, GSR has agreed to buy $30 million merit of tZero Security Tokens from Overstock, according to statements.
Overstock word go announced GSR’s intention to purchase equity in the firm in June 2018, correspondence to a press release. At the time, Overstock said GSR would purchase $160 million in tZero care tokens.
The company said that it ended its sale “raising $134 million in aggregate deliberation,” adding that “this sum includes $30 million from repayment of intercompany in arrears between tZero and Overstock.”
GSR is purchasing the same security tokens from Overstock that Overstock pay off from tZero as part of “a repurchase agreement,” according to Thursday’s haste release.
CEO Patrick Byrne said that the funding would expropriate support tZero efforts, particularly when accounting for the amount punted in by GSR.
“When GSR completes its planned investments, we should have over half-a-billion dollars,” Byrne listed in a statement Thursday. “We believe this will provide ample capitalization with which to establish a company that can upend global capital markets.”
Editor’s note: This article has been updated with assertions from an Overstock earnings call. Brady Dale contributed cracking to this story. CoinDesk is monitoring this developing story.
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