In a letter to Series A Preferred stockholders dated May 1st 2019, Overstock.com announced a transfer of the Series A shares to the tZERO security token trading platform. The new shares— identified as Series A-1 shares— will have the same rights but less restrictions.
According to the letter, the transition is being made to “enhance shareholder trading experience”.
The transition involves the issuance of new ‘Series A-1 shares’ as part of a new series of preferred stock, in exchange for the old Series A shares.
The new shares will retain the same rights as the old shares, including rights to both dividends and voting.
The difference, says the letter, is the following:
“…the new Series A-1 shares will not be subject to all of the restrictions on ownership and related matters that apply to the current Series A Shares and, as a result, the new Series A-1 shares will be able to trade on the tZERO securities token trading platform.”
If permission is granted, stockholders will be required to create an account with tZERO’s brokerage account partner, Dinosaur.
tZERO is a highly anticipated security token trading platform, seeking full regulatory compliance in the United States. tZERO raised $134 million during its initial offering, with their security tokens beginning to undergo live trading in January 2019.
Security tokens typically differ from other digital assets through one primary way. By explicitly declaring themselves securities, security tokens algorithmically enforce their respective securities laws.