CounterPointe Sports Group (CSG), the new owner of the French basketball club Elan Béarnais is pursuing a security token offering allowing members of the public to purchase economic rights in a deal described as the first of its kind. The Avalanche blockchain will power the offering and Securitize will host the offering.
The law firm of FieldFisher advised CSG on the security token offering.
According to a statement by the issuer, the Pau Basketball Team Tokens (PBT tokens) will be security tokens that are qualified as financial securities, but holders of tokens will not be traditional shareholders of the Pau basketball club, but they will benefit from advantages similar to those of a shareholder through a legal structure providing investors a portion of the club’s profits.
Launched last week on April 26, 2022, French investors will be able to purchase 500 lots of 500 tokens that will be available for 450 euros, or 0.9 euro per token.
This investment represents approximately the amount of an annual subscription to attend all the club’s matches. Then the purchase price per token will increase as the sale proceeds. Buyers of tokens will not be able to sell the tokens for a minimum of one year after the closing of the sale.
In total, 10 million tokens will be offered for sale, half of which are reserved for the exclusivity window for French buyers (from April 26, 2022, to May 9, 2022).
Token holders will also have privileged access to the upcoming offer relating to a real estate project. This project called Climate Technology Park will be a sustainable building complex, constructed in collaboration with eco-conscious companies that will host a training center, restaurants, a hotel, and more.
The company states that a simplified information document (document d’information simplifié or DIS) that does not require AMF approval will be made available to investors in accordance with French regulations.
The money raised is expected to be fully reinvested in the club for operations including staff and player salaries, improvements to equipment and facilities, and a potential investment in the property project. Part of the sum will be set aside for later uses and a portion will be used to cover the costs of the token sale itself.
Fieldfisher’s Financial Services department, led by partner Arnaud Grünthaler, advised CSG, an American investment fund that owns the Elan Béarnais basketball club, on the legal and regulatory structuring of its STO. This is the second STO carried out in France and supported by Grünthaler and his teams who advised Logical Pictures as part of the STO of 21 Content Ventures in 2020.
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