February 21, 2018 Five:16 pm 0
An established Fresh Zealand based internet provider that has bot profitably running for a decade, is to sell 10% of its company shares ter an ICO, making it the very first crypto-equity suggesting.
HD Group, which wields HD Televisiekanaal and other businesses, is to effectively engage ter a limited IPO, but instead of listing ter the stock market they hope to be listed ter the crypto market exchanges, one of them ICOEX, run by themselves. Ben Simpson, its CEO, says:
“We’re accountable to our investors and wij have a legal structure whereby HDCoin holders will be beneficiaries of shareholding te the HD Group. HDCoin Trust will safeguard the interests of the investors. Dividends will be used to buy back and burn HDCoin.”
They are setting up a fresh company called HDCoin Limited which will be 100% wielded by a trust. HDCoin Limited will te turn buy 10% of HD Group’s equity. Making this, effectively, an equity suggesting.
HDCoin’s legal structure.
The company says their revenue is about $20 million a year and they are hoping to raise around $14 million for that 10% te a sale of 1 billion tokens with none retained by the company.
They are, therefore, te effect valuing themselves at around $200 million, with their gross margins standing at 33%.
They do not provide profit numbers, but they very likely could be calculated from the figures they do provide. Making their somewhat limited disclosure still of a more extensive nature than any previous ICO wij have seen so far where figures are worried.
Another facet might be legality. This is ter effect an equity sale to the public, so might fall within some regulations. Te an e-mail exchange, Simpson said:
“This is legal to offerande from our country (the one thing wij can’t do is sell to Fresh Zealand consumers), wij spent alot of money, te the hundreds of thousands setting up the legal documents and structures.
Yes, this system is very much like an IPO, this wasgoed part of the point spil wij could have listed on the Fresh Zealand stock market but I chose to use Crypto spil I have bot ter it for along time and have the inhouse talent to do it decently.”
Overall, this is a fresh development whereby actual established companies already generating profit are selling equity directly to the public, rather than going through VC fund raising.
If the trend catches on, that might have considerable implications for wealth generation spil the value creation process is opened to all, rather than being limited to just the very rich.
With the public now potentially able to invest ter not just big multinationals that sometime act like governments themselves or like monopolies, but also te more nimble petite and medium sized businesses with more slagroom for growth.
And so benefit from a slightly higher level of risk-taking, but also potentially a higher level of dividends. With HD Group stating third party valuations estimate a growth of 50% year on year.
Some of that profit will be used to buy back and burn the tokens te a dividend like distribution manner. Te the process enlargening the value of remaining tokens due to enlargened scarcity spil long spil request remains onveranderlijk.
Making it all one of the more interesting development of the year, especially if other start-ups or SME businesses begin considering ICO token sales spil an alternative to VC gatekeepers.