Do you remember Republic Note? Back in 202o, Republic sought to raise capital for a security that provides purchasers with a portion of the income generated by the investment crowdfunding platform. At that time, Republic raised about $16 million in a sold-out Reg D 506c offering for accredited investors. Simultaneously, Republic filed a Form 1-A to enable non-accredited investors to participate in the securities offering, pitched as a digital asset. Unfortunately, the Securities and Exchange Commission (SEC) struggled to qualify the Reg A+ offering.
This week, a Reg CF offering emerged from “Republic Core” as part of a “limited allocation” of the Republic Note. The offering is already fully funded at $3 million (937 reservations and investments), with a waitlist for investors that did not make the cut. At the same time, a Reg D offering was filed seeking $600,000.
The offering is described as follows:
“Republic has the potential to realize profits each time one of the companies we invested in or helped fundraise—past, present, and future—gets acquired at a premium or goes public. Portions of the profits from these investments will get distributed to Republic Note holders.”
Republic has enabled over $1 billion in gross transactions since its inception. Add in the Seedrs acquisition, and the needle moves higher.
Republic Core is the tech stack that helps to power Republic’s subsidiaries, like its funding portal and Reg D offerings. Republic Note will represents a fractional share in any profits generated by Republic Core.
The Offering Document for the Reg CF investment explains that investors (starting at a minimum of $60) are purchasing Republic Core’s Class B membership interests. The asset will be issued in digital form using the Algorand blockchain. The company is using Upside’s token management software for the digital security. The smart contract provides features for the management of the asset. You should read the offering document because it includes extensive information on Republic.
A total supply of 800 million tokens have been generated, but Republic Core intends to initially keep 43.75% of the Total Republic Note Supply, or 350,000,000 Republic Notes, for investors in the offering and as a General Reserve from which it may make future issuances, as Republic Core deems prudent. The rest of the tokens will be locked reserve; (30%) for private transactions-associate reserves (10%) and bounty offerings/private transactions – community reserves (16%).
Fractional Ownership of the Profits
Republic Core aims to periodically, at least twice in any twelve-month period (on June 30 and December 31), calculate the total amount of Republic Core Proceeds it has received since its last distribution and, whenever this calculation yields a Distributable Amount that exceeds the $2,000,000 threshold, pay out a portion of the proceeds to Note holders. Of course, this is largely predicated on an expectation that Republic continues to grow over time and issuers generate returns for Republic.
You may view the offering page here.
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