tZERO’s preferred equity security tokens (TZROP), which were issued in a private placement in August 2018, are now available to be resold to non-accredited investors through their account at Dinosaur Financial on the PRO Securities alternative trading system (ATS).
TZROPs have been traded by accredited investors since January 2019. The issuance of tZERO’s security tokens in August 2018 raised approximately $134 million in aggregate consideration from over 1,000 global investors. It had reached over $100 million USD in commitments from investors in the first 12 hours, with over 10,000 subscribers registered for accreditation ahead of the token sale.
The token provides direct exposure to tZERO’s revenue growth through its quarterly dividend model. tZERO may distribute a quarterly dividend equal to 10% of tZERO’s adjusted gross revenue – equivalent to the gross profit reported – to its security token holders. Dividends may be paid in U.S. dollars, Bitcoin, Ether or additional security tokens.
Saum Noursalehi, Chief Executive Officer at tZERO, commented: “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.”
Founded in 2014, tZERO aims to use 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 has recently launched an Android version of its recent cryptocurrency mobile app, allowing investors to buy, sell and hold digital currencies directly on their mobile phone through the tZERO Crypto App, rather than using third-party exchanges for custody. The firm’s digital securities trading platform is designed to enable private resale transactions to accredited investors, consistent with U.S. securities law.
Last week, tZERO successfully patented its Time Ordered Merkle Epoch (TOME) methodology, a base-layer technology that uses digital signatures to record and verify time-series data such as trades, executions, and settlement. The technology allows tZERO to verify the existence of previous trades and simultaneously produces an auditable and immutable record of those transactions. It can also link the settlement of tokenized blockchain-based securities on a public blockchain with legacy trading systems.