SEFtoken has announced their intention to host an upcoming Digital Security Offering (DSO).
The company is undergoing this fundraising to continue the development of their Licensed Exchange Infrastructure.
Securitize – a market leading end-to-end issuance service – will provide the services needed to undertake this DSO.
SEFtoken is offering a product that is unique from what the market has seen to date.
The plan is to offer what SEFtoken refers to as a ‘covered warrant security token’.
A ‘covered warrant’ refers to the ability for an investor to purchase a security at a specific price. This purchase must take place prior to a predetermined deadline.
Each token is representative of a warrant, which can later be converted into equity through use of the company’s Financial Market Infrastructure.
This is a unique approach, and a first, in the world of digital securities. As it is another potential means in which blockchain technology can be used to advance finance, many eyes will be watching the success of the product.
SEFtoken is a Delaware based company. They are a young company looking to make their mark on the industry. However, by turning to Securitize, they now have the means to successfully launch their world’s-first ‘covered warrant security token’.
Director of SEFtoken, Brian Price:
“The use of the covered warrant structure in the digitized security token era of 2019 introduces a critical structural enhancement to the industry overall and we are pleased to be able to grant potential investors with actual asset ownership via SEFtoken.”
“Through our SEFtoken structure, we are committed to providing investors with what they are demanding, namely transparent and compliant ownership of a credible asset. If the offering hard cap is met, that ownership means SEFtoken holders will own 47 percent of the underlying asset and as a block will become the largest shareholder of the asset.”