Paris, November 7nd, 2018 – DESICO, a startup that is developing a security token ecosystem, announced its plan to conduct its own Security Token Offering (STO) starting on November 7, 2018, during which investors will be able to purchase DESI tokens.The company relies on the STO fundraising model given that security tokens represent safer and more valuable instruments compared to ICO-based utility tokens. For this, DESICO went through several regulatory filters, finally securing the required licenses for its STO, in accordance with EU member state laws. By leveraging the financial brokerage license through the acquisition of a brokerage services firm, DESICO is free to issue security tokens to raise capital for its business.
During the crowdsale, the company will release so-called Revenue Participation Note (RPN) units, which will provide quarterly payouts to investors. The RPNs, which represent a type of security tokens, won’t provide any ownership rights in DESICO, but will allow token holders to receive quarterly payouts that constitute 12.5% of the company’s revenue. There will be no cap on revenue-based payouts for holders. Thus, the RPN security model enables investors to benefit from DESICO’s profit and growth.
To operate within the legal framework, DESICO will conduct its STO on its own platform under a joint venture with its EU-based brokerage, crowdfunding, and e-money license holders.
The rationale behind DESICO’s move is to show potential clients that the company is pursuing the same business model that is proposed for users. The team intends to prove to the public that it has great confidence in its own product and system.
Laimonas Noreika, co-founder and CEO of DESICO, said: “Out of all the security token platforms, we are the ones who are doing our STO the same way that we promise we will do for our clients, who will be eligible to do the same in the future.”
“Securities will bring more value and more protection for you – investors. Our DESI token is constructed to share 12.5% of any revenue that DESICO makes,” he explained.
DESICO STO Details
The STO event will be conducted in three stages:
- Pre-sale – token price: $0.98; The first stage of the STO will start on November 7, 2018, targeting a cap of $1 million.
- Crowdsale – token price: first part – $1.07, the second part – $1.09; The crowdsale will begin in January 2019, with a hard cap of $5.75 million.
- Hard cap – token price: $1.15; During the final stage, the security tokens will be sold to institutional investors.
Retail investors will have to invest no less than $230, while the maximum investment limit will be the equivalent of $5,750,000. Accredited investors will be required to invest no less than $143,750, with no upper limit. Payment will be conducted through cryptocurrency and then converted to Euro.
Investors planning to take part in DESICO’s STO event have to consider the know-your-customer (KYC) and anti-money laundering (AML) requirements. According to current laws, in the US, the STO can be joined by accredited investors only.
DESICO is a platform that enables the issuance and trading of tokenized securities in full compliance with EU law. DESICO will operate under crowdfunding law, financial markets law, and the EU’s e-money directive for the Republic of Lithuania, which allow authorized entities to issue Tokenized Securities in order to raise capital. DESICO is based in Paris, France, and in Vilnius, Lithuania.