Windermere Capital, a Montreal-based investment firm, is adopting PermianChain’s digital securities issuance platform for natural asset security tokens (NAST). NASTs are issued by privately-held oil and gas companies adopting the oil and gas Blockchain-integrated framework (OGBiF). PermianChain Technologies, the firm behind the OGBiF and NAST, is a fintech and blockchain start-up that brings together the digital asset mining and oil and gas sectors.
The move makes Windermere Capital the first exempt market dealer (EMD) to serve OGBiF issuers and deal in their NAST under available prospectus exemptions on the PermianChain framework. EMDs are a key component of the oil and gas sector in Canada. They trade in exempt market securities which can be traded without prospectus requirements although they still have to adhere to market regulations that help protect investors such as know your client (KYC) and anti-money laundering (AML) regulations. EMDs are often interested in small but still credible oil and gas projects that require investment but may not meet the requirements of the full investment process for most financial institutions.
Windermere will be the lead placement agent in Canada for the Brox Equity token (BROX), a multi-commodity, income generating digital security that is comprised of natural gas, oil, electricity and Bitcoin. BROX will be the first NAST issued through the PermianChain Investor platform to accredited investors.
The BROX issuance will be Brox Equity’s second-round capital raise, which will lead to the development of 60MW natural gas power sites for bitcoin mining data centres in Alberta and on its existing oil and gas producing fields in East Texas. The power capacity will be tokenized on the PermianChain, built on HyperLedger Fabric, to provide low-cost electricity and host PermianChain’s network of miners around the world. This will enhance capacity for the digital asset mining sector, using stranded or otherwise wasted natural gas from the growing number of oil and gas projects in Brox Equity’s pipeline across Canada and the US.
“PermianChain looks at the blockchain as a way of solving issues for both the natural resources sector, which often has wasted gas that would be too expensive to pipe to market, and the digital-asset mining sector, which is desperate for low-cost, reliable power to support their innovative projects,” says Mohamed El-Masri, founder and CEO of PermianChain Technologies and director and CEO of Brox Equity. “Windermere Capital adopting the NAST method to sponsor the companies that are implementing the OGBiF validates our business model and more importantly will increase access to capital and reduce waste for the natural resources sector and increase affordable power for digital asset mining projects.”
“Windermere Capital is always seeking innovative ways to capitalize on its natural resource assets. PermianChain’s framework and approach to tokenize natural resources under the OGBiF and NAST mechanisms eliminates many of the sector’s convoluted processes and high investment barriers,” says Chris Wright, Founding Partner and Managing Director of Windermere Capital. “The issuance of BROX is an important milestone to bringing institutional acceptance for NAST as income-generating financial instruments.”
In September Permian Chain added Gemini Custory tools and services providing a secure and regulated cryptocurrency custody solution to exempt market dealers.
In 2019 UNLOCK interviewed Founder and CEO of PermianChain Mohamed El Masri who discussed the aim of PermianChain and their endeavours to have a license as well in the UAE.