Overstock Raises $10.9m through Blockchain Stock Issuance

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Overstock.com (NASDAQ:OSTK) announced that its rights offering of Blockchain Voting Series A Preferred Shares and Voting Series B Preferred Shares closed today, raising total gross proceeds of approximately USD $10.9 million before payment of the dealer-manager fee or any other expenses.

“This offering is historic in that we have successfully issued public securities that exist only on a Blockchain,” said Overstock CEO Patrick Byrne. “In doing so, we have demonstrated to the world that there is indeed a path toward applying Blockchain technology to capital markets in a way that complies with regulatory requirements and is accessible and practical for both issuers and investors. In the process, we raised a meaningful amount of capital, which Overstock can use to continue fueling our growth.”

Source Capital Group, Inc. served as the dealer-manager for the rights offering. The company raised total gross proceeds of approximately $10.9 million before payment of the dealer-manager fee or any other expenses.

Of the 695,898 shares sold, 126,565 were Series A Blockchain shares, the release said. With this, Overstock has become the first publicly traded company to issue stock over the internet, Wired noted.

The Blockchain shares are trading on a registered alternative trading system utilizing Medici Ventures’ t0 platform. Medici Ventures is a wholly owned subsidiary of Overstock. The trading symbol for the Series A shares has been changed to OSTKP. The Series B shares will trade in the over-the-counter market and are expected to be quoted on the OTCQB operated by OTC Markets Group.

“An enormous amount of work went into this offering,” said Jonathan Johnson, chairman of Overstock’s board of directors and president of Medici Ventures. “We created new technologies and formed novel partnerships while shattering formidable barriers.”

About Richard Kastelein

Founder of industry publication Blockchain News, partner at ICO services collective CryptoAsset Design Group (helped raise over $200m+), director of education company Blockchain Partners (Oracle Partner) and ICO event organiser at leading industry event  CryptoFinancing (first ICO event in Europe) - Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of half a dozen Blockchain startups and has written over 1200 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat.
 
Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London, Manchester, Minsk, Nairobi, Nanchang, San Mateo, Shanghai,Tel Aviv and Venice. His network is global and extensive.
 
He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He's written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and Virgin.com and his work and ideas have been translated into Dutch, Greek, Polish, German and French.
 
A journalist by trade, an entrepreneur and adventurer at heart, Kastelein's professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he's travelled for nearly 30 years as a Canadian expatriate living around the world.
 
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, "The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he's raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

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