E-commerce giant Overstock’s blockchain stock sale is set to begin later this month.
Overstock announced today that Connecticut-based investment bank Source Capital Group, Inc. will serve as dealer-manager for its planned blockchain-based stock offering.
In March, the e-commerce giant said that it would issue its own stock via blockchain, utilizing its tØ blockchain platform to facilitate trades. During an event last month, Overstock CEO Patrick Byrne said that trading of the stock could begin as early as mid-December.
Now, the company has divulged new details. According to Overstock, the e-commerce company is planning to offer as many as 1 million shares. Each of those shares, the company said, will have preferential rights to a 1 percent cumulative annual cash dividend. The subscription period for the share offering is set to begin on 15th November.
Overstock further explained:
“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. Stockholders will also 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.”
In statements, Byrne praised the team at Source Capital Group.
“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,” he said.
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