tZERO Signs Letter of Intent with GSR Capital for Security Token Investment of $160 Million

Security Token Offering closing date extended to August 6, 2018 to accommodate GSR and other investors

tZERO, the global leader in blockchain innovation for capital markets, today announced the signing of a letter of intent (LOI) with GSR Capital (GSR), a private equity firm organized under the laws of Hong Kong, to participate in tZERO’s Security Token Offering (STO). In accordance with the LOI, GSR will purchase U.S. $160 million in tZERO Security Tokens pursuant to the Simple Agreement for Future Equity (SAFE). The purchase price per Security Token will be $10.00. To accommodate the investment from GSR, tZERO’s STO has been extended to August 6, 2018.

As of June 28,2018, tZERO has entered into executed SAFEs in excess of $168 million for Security Tokens, of which over $95 million has been already funded. Approximately 1,000 people from 30 countries participated in the token sale, making it one of the most widely held security tokens globally. tZERO will continue to accept investments in the STO on a first-come, first-served basis until the August 6 expiration of the STO.

tZERO CEO Saum Noursalehi said, “We are overwhelmed by the support we have received from all of our investors, and thrilled to have GSR on our team as we seek to launch the world’s first security token exchange. This investment from GSR further validates tZERO’s strategy to introduce blockchain to capital markets, and this partnership will accelerate our global expansion efforts.”

tZERO Executive Chairman Patrick M. Byrne (who is also the CEO and Founder of tZERO parent company Overstock.com) said, “I want to thank our strategic investors again for their continued support, as well as the tZERO team for their ingenuity in making a preferred equity security token possible. Years ago we saw the world-shaking potential of blockchain, and since then we have been methodical in building tZERO into a company that will bring great efficiency and transparency to capital markets domestically and abroad.”

Proceeds from the tZERO Security Token sale will be used, among other things, to build out securities trading functionalities supporting the recently-announced joint venture with BOX digital Markets to launch the industry’s first regulated security token exchange. Additionally, funds will be used to bolster the human capital and talented team at tZERO and allow for further international expansion in the future.