The tZERO blockchain platform failed to close a $ 100 million round of financing in the period

The operator of the same name blockchain platform tZERO, a subsidiary of the retail giant Overstock, was unable to raise $ 100 million from Chinese investment firm GSR Capital and Singapore direct investment fund Makara Capital on time. This platform reported in a letter to shareholders.

According to Patrick Byrne, CEO of Overstock, the parties have not yet been able to conclude a final deal, although "negotiations with companies are proceeding smoothly."

Last summer, Overstock and GSR Capital signed an agreement, under which GSR pledged to acquire a stake in tZERO of $ 270 million, Overstock shares for $ 104.55 million and tZERO tokens for $ 30 million. The deal was to be completed in December, but the company asked for it time until February.

In early March, Byrne said that GSR Capital did not close the round and attracted Makara Capital to jointly buy out a stake in tZero. Nevertheless, the Chinese company is still obliged to purchase tokens for $ 30 million by May 6.

So far, the main source of funding for tZero, whose token has significantly depreciated , is Overstock.

Note that the plans of GSR Capital to invest in tZERO were first announced in July 2018. Then it was about the amount of $ 160 million. It was assumed that the participation of GSR in financing tZERO will provide the venture capital firm with the right to receive dividends, the amount of which will be based on the growth dynamics of the project token.

Recall, the security tokens platform tZERO was launched in January of this year.

In March, tZERO announced plans to launch a mobile application for buying and selling bitcoin.

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