DESICO, a platform designed issue and trade tokenized securities that says it is in full compliance with the law, will issue its own security token offering (STO).
The “DESI” tokens will be issued under EU law as DESICO is based in both Paris and Vilnius. DESICO says it will operate under crowdfunding law, financial markets law, and the European e-money directive for the Republic of Lithuania, which allows ICOs to issue STOs to raise capital. DESICO states that it originally planned to issue a utility token but management is now pursuing its own STO following the acquisition of a financial brokerage license. Additionally, this license will allow DESICO to issue security tokens for other issuers.
DESICO CEO and co-founder Laimonas Noreika recently explained that out of all of the STO platforms they are one that is self-funding using the process they “promise [they] will do for [their] clients, who will be eligible to do the same in the future.” Noreika notes that several Fintechs, like digital bank Revolut, are operating with licences out of Lithuania for EU passporting reasons.
Noreika believes the STO model demonstrated with the DESI tokens will be a great example for future clients to see how the process will look for them in the future.
The DESICO STO crowdsale will begin on November 7th, and will be classified as a Revenue Participation Note (RPN), with quarterly payouts to investors, according to the company.
DESICO explains that this type of security token does not constitute ownership (equity) of DESICO, but allows token owners to receive 12.5% of the total revenue earned by DESICO.
DESICO says there will be no cap on revenue payouts for token holders.
The DESICO STO is planned to have three stages; pre-sale, crowdsale, and hard cap.
Pre-sale will begin on November 7th 2018, and will have a cap of $1 million. The crowdsale will start in January 2019, with a hard cap of $5.75 million. DESICO says it will sell the balance of tokens to institutional investors. Payment will be made via cryptocurrency and then converted to Euros. All investors must pass KYC and AML requirements.
STO Price Per Token:
- Pre Sale – $0.98
- Crowdsale Part 1 – $1.07
- Crowdsale Part 2 – $1.09
- Hard Cap Price – $1.15
The minimum investment for retail investors will be $230, with a maximum investment of $5,750,000.
Accredited investors will have a minimum investment requirement of $143,750, with no cap on maximum investment.
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