Overstock partners with Source Capital to sell blockchain stocks

Crazy Review : Online retailer Overstock.com, Inc. announced a partnership with investment bank Source Capital Group, Inc., intending to use t0 blockchain technology to reduce securities trading settlement time from T+3 to same-day settlement and T+0, and blockchain stocks can only be traded on a registered alternative trading system using t0 blockchain technology. At the same time, its shareholders can subscribe to shares of its blockchain voting Series A preferred stock.

Translation: Nicole

Overstock.com, Inc., an industry-leading online retailer, has announced that investment bank Source Capital Group, Inc. will serve as dealer manager for its previously announced new stock offering, allowing Overstock shareholders to purchase its preferred shares, including shares issued using t0 blockchain technology.

Patrick Byrne

Overstock CEO Patrick Byrne said:

“Source Capital Group brought not only great insight but also great foresight to this transaction. Source quickly saw the value in what we were doing not only from a business perspective but also from a historical perspective and demonstrated that we had found the right partner when it came time to launch this product.”

t0 uses blockchain technology to reduce the settlement time of securities transactions from the trade date plus three days (termed T+3) to same-day settlement or T+0. Overstock said that the blockchain stocks can only be traded on registered alternative trading systems using t0 blockchain technology. Mainly to enable its majority-owned subsidiary t0.com, Inc., to demonstrate the operation of the t0 issuance and trading platform.

According to the official statement, Overstock intends to offer a maximum of 1 million preferred shares and allow shareholders to subscribe for shares of its Blockchain Voting Series A Preferred Stock. In addition, shareholders will have the opportunity to subscribe for an alternative series of its preferred stock, which is economically the same as the Blockchain Voting Series A Preferred Stock, but will be traded in the over-the-counter market.

"Each share of preferred stock will have voting and dividend rights equivalent to one share of common stock in the event of liquidation. Each share of preferred stock will also have a preference right to a 1% cumulative annual cash dividend."

The subscription period will begin on November 15, 2016 and end on December 6, 2016.