Overstock.com subsidiary raises $134 Million in Security Token Offering

Popular Internet Retailer Overstock.com announced on Thursday that one of its subsidiary named tZero has raised $134 million in its security token offering.

The Token Sale

This announcement was paired along with a separate disclosure that revealed the Hong-Kong based equity firm GSR Capital agreeing to invest $400 million in Overstock and tZero. The firm had aimed of raising $250 million through the offering but still tZero announced the completion of its token sale, earlier in this week.

CEO Patrick Byrne said during an earnings call,

“We did the very best we could… eventually we went to Asia. In Asia, it was quite different. The first three people we met … all said ‘we’d take $60 million’ [but] it proved extremely difficult to get money out of Asia for many different reasons.”

Referencing to multiple extensions to the company’s sale, he said, “that’s what slowed things down so much”. Due to this deal, GSR could acquire approximately $270 million in tZero equity at a valuation of $1.5 billion. And it will also acquire up to $104 million in Overstock shares. As per the statements, GSR has also agreed to buy $30 million worth of tZero Security tokens from Overstock.

A press release earlier said that Overstock announced GSR purchasing its equity in the company on June 2018. It added that GSR is estimated to purchase $160 million worth of tZero security tokens. The company said that the sale was ended “raising $134 million in aggregate consideration. This sum includes $30 million from the repayment of intercompany debt between tZero and Overstock.” The same security tokens that Overstock bought from tZero as a part of “a repurchase agreement,” was bought over by GSR Capital.

Overstock.com

Headquartered in Utah, US, Overstock.com is an American Internet retailer selling home decor, furniture and other stuff. During the time of launch in 1999, it only sold surplus and returned merchandise on an online e-commerce marketplace. Its co-founder Patrick Byrne is a very influential and important person in the industry world.

 

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