One of the leading security token platforms, tZERO, recently experienced another blow. A potential investor has dropped out its consideration for funding the platform.
In an investor call on Monday, new CEO of Overstock Johnathan Johnson told interested parties that “Makara will not be investing in tZERO right now.” The Singapore-based fund will be pulling out of its planned co-lead regarding a $100M investment in tZERO common stock.
The target date came and went, with the fund expected to close the deal in April. However, the deadline came and went, with Mankara’s co-sponsor, GSR Capital, ultimately investing just $5M in May.
Overstock seems to indicate that the deal was still certain, however. After the Q1 earnings report, it was said that the investment was very likely, with the company being “optimistic (but not certain).” The failure to close the deal will cost tZERO of around $95M in potential investment in its common stock.
The sad news comes at a time then the long-time CEO of Overstock, Patrick Byrne, unexpectedly left the company. Although the online giant still claims it is maintaining its crypto-focus, this most-recent disappointment should definitely raise some eyebrows.
Do you believe Overstock is due to lose some momentum and might incur some losses from its management shakeup? Let us know your thoughts in the comments below.
Image courtesy of tZERO.