As of May 14th 2019, PCF Capital Group has selected KoreConX to launch a $250 million security token offering. The offering is said to be available to accredited investors, institutional investors, and family offices across multiple jurisdictions.
PCF Capital Group’s Security Token Offering (STO) with KoreConX Explained
PCF Capital is a major Australian capital advisory firm. They primarily focus on the mining industry, having executed 120 mine divestment and project financing mandates for more than $2 billion.
They have now chosen KoreConX to launch a security token offering which aims to raise $250 million. The offering will be marketed across numerous jurisdictions and will be open to multiple investor classes.
Accredited investors, institutional investors, and family offices located in the jurisdictions of the United States, Cayman Islands, Australia, Canada, United Kingdom, United Arab Emirates, Singapore, and Hong Kong will be eligible to participate in the offering.
The security token ecosystem of KoreConX will be leveraged for regulatory compliance.
The permissioned blockchain of KoreConX claims to provide fully-compliant offerings of tokenized securities. The ecosystem is comprised of broker-dealers, secondary market platforms, and securities lawyers. They will also offer services including investor relations, futures, as well as a portfolio management tool.
The Rise of the Security Token Offering (STO) Explained
STOs are increasing at a notable rate.
The bulk of the reasoning lies in regulatory compliance. US Securities and Exchange Chairman (SEC) Jay Clayton has stated on numerous occasions that virtually every Initial Coin Offering (ICO) he has seen, constitutes a securities offering.
Companies wishing to raise funds through digital or tokenized assets must therefore abide by the SEC’s existing regulations, he says.
The result has been the emergence of the STO and security tokens, which algorithmically enforce regulatory requirements.
Enterprises wishing to compliantly raise capital while utilizing the benefits of blockchain technology are leaving the ICO behind, and turning to the STO as a viable alternative.
While ICOs currently raise 58 times less than they did at this time last year, STOs saw a 130% increase in Q1 2019.
What do you think of PCF Capital Group launching a $250 million STO? Let us know what you think in the comments section below.
Image courtesy of Mining.com.