Kodak to Raise $50mln in Token Offer for Blockchain Project
Wenn Digital is the developer of an image protection blockchain platform licensed by Eastman Kodak Co. It said on Thursday it plans to raise up to $50 million in a combined public and private token offering.
Wenn Digital has developed an image protection, monetization, and distribution platform secured via blockchain called KODAKOne. The blockchain is designed to protect the copyright of images or photographs registered on the platform. In addition, Kodak reportedly owns a minority stake in Wenn Digital.
Kodak has been active in developing the blockchain with Wenn. Its recent stock performance is strongly linked to the outlook for KODAKOne.
Shares of Kodak have risen from its early 2018 lows around $3 to as high as $11.55 when it announced its deal with Wenn. It quickly lost two-thirds of its market value when the token offering was delayed. The stock closed at $5.15 on Thursday.
Further, blockchain is the system powering cryptocurrencies like bitcoin. It is also a shared database that a network of computers connected to the internet maintains.
Wenn’s token is called KODAKCoin, with the public offering scheduled on May 21. Initially, it was scheduled for January but was delayed due to regulatory issues.
“We really took a step back and decided that we would ensure all Ts were crossed and Is dotted before we embark on a public sale,” Cam Shell, chairman and co-founder of KODAKOne, told Reuters. “We wanted to make sure that we got it right.”
Kodak’s token offering complies with the SEC
Additionally, the token offering will comply with the US Securities and Exchange Commission (SEC). KODAKOne will use Simple Agreement for Future Tokens (SAFT), an investment contract offered by cryptocurrency developers to accredited investors.
Being a security, SAFT must comply with securities regulations. Meaning, it requires the token to be issued when the blockchain platform is launched.
“We are excited to offer the SAFT and the rights to the underlying KODAKCoin Token in a manner structured to fully comply with an exemption to the SEC’s registration requirements,” said Jan Denecke, CEO of Wenn Digital.
“Our goal with this offering is utmost security and transparency, working to bring digital tokens to investors by adhering to industry best practices and in a manner that hope instills public confidence in the crypto space.”
Wenn Digital has already conducted a pre-sale of its SAFT to accredited investors. It raised about $10 million.
However, as the company’s capital requirement is $20 million, Chell said demand was greater.
“I think $50 million is our Sweet spot,” Chell said.
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