Knowbella Tech LLC, a “scientific ecosystem powered by the Helix token,” has announced its intent to use Reg A+ for its initial coin offering (ICO) raising up to $50 million under Tier II of the exemption. As the SEC has clamped down on issuers not filing an exemption, Knowbella is utilizing one of two possible vehicles to raise capital from private investors while remaining compliant.
“Until now no initial coin offering, or ICO, has raised capital through Regulation A+ (Reg A+),” commented Mark Pohlkamp, CEO. “Knowbella Tech aims to be among the first to make history with a transparent and compliant Tier 2 Reg. A+ offering.”
The net proceeds of this offering will be used primarily to launch a blockchain-enabled open science collaboration platform. The company believes this will unlock “up to $4 trillion of orphaned and dormant intellectual property.” Collaborating scientists will be rewarded with the Helix token or, as the company calls it, “The Currency of Science.”
By using Reg A+, both accredited and non-accredite investors may participate in the offering. Importantly, the security becomes immediately transferable thus allowing the token to be traded on an exchange.
“Reg. A+ allows us to advertise and reach out to everyone who may have an interest in our scientific platform and business,” Pohlkamp said. “It is similar to a pre-sale or perk crowdfunding campaign offered on platforms like Kickstarter or Indiegogo, but also allows us to offer participants equity in our Company in the form of Helix tokens, similar to cryptocurrencies.”
Knowbella has yet to file their Form 1-A which must be qualified by the SEC first. Knowbella says it has engaged Keating Muething & Klekamp PLL as its legal advisors for the offering. Knowbella plans to “test the waters” to gauge market demand for its proposed Reg. A+ offering prior to qualification of its offering statement by the SEC. The company did not indicate whether it would list on a crowdfunding platform or host the offer directly on its site.
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