The year 2019 is believed to be the year of security tokens. With several big firms coming up to embrace the securities industry in 2018, the beginning of 2019 hasn’t disappointed us. SEFToken Inc., marked the new year by launching a new form of tokenized instrument – a “covered warrant.”
A covered warrant is issued without an accompanying bond or equity. It allows the holder to buy or sell a specific amount of equities, currency, or other financial instruments from the issuer at a specified price at a predetermined date.
SEFtoken, Inc. has become the first company to issue a compliant digital security with “covered warrant” structure. As reported in the medium post of SEFtoken, the covered warrant will provide the holders right to convert the warrant into equity shares via a compliant digital security offering for the underlying asset, which is a licensed and regulated Financial Market Infrastructure.
SEFtoken reported that the new covered warrant tokens are to be issued via the Securitize platform on the Ethereum blockchain. The tokens will be convertible into equity in Mercari, an Australia based licenced exchange. SEFtoken is aiming to raise between US $31 million – $125 million, in an SEC-compliant offering, exempt from registration under regulations D and S. The offering is said to be available to accredited investors in the United States, or to other investors abroad.
Comments from SEFtoken
“The use of the covered warrant structure in the digitized security token era of 2019 introduces a critical structural enhancement to the industry. Through our SEFtoken structure, we are committed to providing investors with what they are demanding, namely transparent and compliant ownership of a credible asset.” said Brian Price, Director of SEFtoken, Inc.
Comments from Securitize
Carlos Domingo, Co-Founder and CEO of Securitize stated “We at Securitize are very excited to kick start the new year by helping SEFtoken issue the first ever covered warrant structured digital securities. Innovative structures like these help showcase blockchain technology’s potential to unlock illiquid assets in a compliant way for asset holders.”
For more information about SEFtoken, Visit seftoken.io
Also Read our Marketing Guide to Launch a Security Token Offering