On December 9th 2019, security token platform Smartlands announced an upcoming Security Token Offering. The sale will feature a 3.5% equity stake and will be open to accredited investors based in the United States (U.S.).
Smartlands’ Security Token Offering Explained
Smartlands is a developing security token platform which has made waves throughout the United Kingdom (U.K.). The platform is already responsible for a number of successful Security Token Offerings (STOs).
Now, Smartlands has announced its own STO. The company — Smartlands Holding Ltd. — is offering 3.5% of its equity stake to investors across the globe. Smartlands is looking to raise $1 million with a $28.6 million pre-money valuation.
The funds will be used to spark a global expansion, further develop their recently released digital payment product Smartee, as well as fund the distribution of the first Smartee payment cards. This will be the first time the company offers tokenized shares to investors based in the United States, though those investors will need to be accredited.
The STO will leverage Financial Industry Regulatory Authority (FINRA)-registered broker-dealer IIP Securities. The offering will be compliant under the Securities and Exchange Commission’s (SEC) Reg D and Reg S exemptions. Though a start date has yet to be announced, accredited investors across numerous jurisdictions will be eligible, per the company.
Smartlands CEO Ilia Obraztsov says the offering is part of a larger plan to raise $3.9 million through the sale of a 12% equity stake. He says the company is in talks with VC funds and various crowdfunding platforms, but the company wants to extend an investment opportunity to its own community. According to Obraztsov,
“For the first time we’re making the tokenised shares issued on Smartlands available for the members of our US community and some other previously untapped geographies…We believe that tokenising own equity is the future of fundraising for startups. This mode of crowdfunding far exceeds other types of public offerings in speed, efficiency, and transparency at much lower costs, potentially bringing a much brighter promise of liquidity.”
Smartlands CMO Yaroslava Tkalich says the company will use the funds to develop a global banking system:
“We have plans to build a global digital banking ecosystem, and Smartee is a big part of it. Designed for highly diverse audiences, it’s a novel solution for digital payments and investing. With Smartee, users will be able to receive, store, and transfer EUR, GBP, USD and the most popular digital currencies in a friendly and secure mobile app with a built-in digital wallet.”
Details of Smartlands’ Successful Tokenization Projects
Though young, Smartlands has already seen some success. The company tokenized shares of a luxury student residence located in Nottingham, UK. A total of 30% of the 124-studio apartment’s ownership is now being recorded on a blockchain. The real estate development aims to support students who attend nearby Nottingham Trent University. In order to compliantly conduct the offering, Smartlands leveraged its stake in Shojin Property Partners who has a crowdfunding license issued by the Financial Conduct Authority (FCA).
Smartlands also tokenized the Disruptive Technologies Fund, an investment fund which targets mid-stage Fintech firms. The fund aimed to raise €8 million through its offering on Smartlands.
Throughout this past year Smartlands announced its membership with the European Crowdfunding Network (ECN). It also forged a partnership with Archax, a developing institutional-grade security token trading platform based in London.
What do you think about Smartlands launching its very own Security Token Offering? What does the future of Smartlands look like? We want to know what you think in the comments section below.
Image courtesy of Smartlands.