Under a pair of U.S. Securities and Exchange Commission regulations, crowd-equity platform Republic has raised $16 million through the sale of its Republic Note security token.
"What we did was a Reg D and a 'testing the waters' under Reg A+," Republic CEO Kendrick Nguyen explained in a phone call.
The Republic Note token is secured on the Algorand blockchain and allows holders to receive dividends from Republic Core, a Republic subsidiary.
Dividends will be earned through exits of companies that did their initial fundraising on Republic.
According to the project's white paper, 800,000,000 Republic Notes have been minted.
Part of the crowd-equity sector that grew out of the JOBS Act of 2012, Republic has facilitated over $100 million in investments since 2019, allowing individual investors to join rounds alongside major venture capital firms.
Overall, more than 10,000 people sought to participate in Republic's latest token offering, the company said in a press release.
Republic had announced a $12 million pre-sale of security tokens in 2018 with support from Binance and NEO. Ultimately, Republic broke these sales into four phases, as described in the Republic Note white paper.
Nguyen said that once Binance Chain is able to support security tokens, a wrapped version of the Republic Note for the Binance Chain will be created.
When the Republic Note offering closes at the end of the presumed Reg A+ approval, the company will have raised roughly $28 million in token sales, Nguyen said.
Republic Cuts Through SEC Red Tape to Raise $16M via Security Token Sale
Published on Aug 5, 2020
by Coindesk | Published on Coinage
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