Bitcoin: China's crackdown isn't enough – only a global effort can stop crypto's monstrous energy demand
Digital Currency Revolution Series: Spotlight On FxWirePro’s BTC Long Hedges As Bitcoin Explodes With Fresh 1-Year Highs
Overstock partners with Source Capital for blockchain stock sale
Leading online retailer Overstock.com, Inc. has announced that investment bank Source Capital Group, Inc. will act as dealer-manager for its previously announced rights offering, allowing Overstock shareholders to purchase shares of its preferred stock, including shares to be issued using the t0 blockchain technology.
“Source Capital Group brings not only acumen, but vision to this transaction,” said Overstock CEO Patrick M. Byrne. “The immediacy with which Source grasped the value of what we’re doing, from not only a business but from a historical point of view, made it clear that we’d found the right partner to take us through this offering.”
t0 leverages blockchain technology to reduce securities trade settlement times from trade date plus three days – termed T+3 – to same-day settlement, or T+0. Overstock said that the blockchain shares will trade exclusively on a registered alternative trading system using the t0 blockchain technology. Done primarily to enable its majority-owned subsidiary, t0.com, Inc., the rights offering will demonstrate the operation of the t0 issuance and trading platform.
According to the official announcement, Overstock intends to offer up to 1 million shares of its preferred stock, and will give shareholders the opportunity to subscribe for shares of its Blockchain Voting Series A Preferred. In addition, stockholders will have an opportunity to subscribe for an alternative series of its preferred stock which will be economically identical to the Blockchain Voting Series A Preferred but will trade in the over-the-counter market.
“Each share of the preferred stock will have voting and dividend rights and rights upon liquidation substantially similar to those of one share of common stock. Each share of the preferred stock will also have a preferential right to a 1 percent cumulative annual cash dividend”, it added.
The subscription period commences on November 15, 2016 and will expire on December 06, 2016.