A sale of Simple Agreements for Future Tokens (SAFTs) for KODAKCoin – the forthcoming digital rights token bearing the name of imaging company Kodak – is set to begin later this month.
The offering, which is limited to accredited investors, will start on May 21 and seek to raise up to $50 million, WENN Digital announced on Thursday. Kodak licensed its brand to the firm for the project, which involves a digital rights management platform that has its own built-in cryptocurrency.
The SAFTs are being sold at $1 apiece, according to WENN. The company's intention to sell SAFTs rather than tokens directly was revealed in a paper published back in March.
As explained in a previous CoinDesk feature, SAFTs are investment contracts designed to be sold to accredited investors as a means of funding development, similar to the way equity changes hands in traditional venture capital. In a SAFT sale, no tokens are offered, sold or exchanged – instead money is exchanged for paper documents that promise access to a future product.
WENN said the sale will be conducted through a platform called Cointopia and that it will be managed by Pickwick Capital Partners and Exemplar Capital.
“We are excited to offer the SAFTs and the rights to the underlying KODAKCoin in a manner structured to fully comply with an exemption to the SEC’s registration requirements,” said Jan Denecke, WENN's CEO, adding:
The sale announcement comes days after a cryptocurrency exchange claimed that it was hosting the KODAKCoin ICO, an assertion that a representative for KODAKCoin called "fraudulent."
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