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One of America’s leading e-commerce giants, Overstock, has plans to change the structure of its digital dividend shares trading.
In a press release from Overstock, the company says that it is working with the necessary authorities towards making its digital asset-based dividend available for trade by non-affiliates.
If Overstock succeeds in restructuring its digital dividend shares trading, the e-commerce company will avoid having to place its dividend shares on a holding period for half a year as is required by rule 144, which is enforced by the United States Securities Commission.
Avoiding the holding period will allow the company to immediately offer its dividend shares to non-affiliates and gain access to the funds that this group of investors could pour into the shares.
Investor interest in digital dividends
According to Jonathan Johnson, Overstock’s interim CEO, they have received a lot of interest about their Series A-1 dividend from shareholders, regulators, broker-dealers, and the general market.
The offering of these digital dividend shares would also enable the company to use blockchain technology to make the investor experience better. Johnson concluded that this is an essential step in the endeavor to demonstrate that blockchain technology has the potential to change society for the better.
Overstock had set the record date for the dividend shares as the 23rd of September. The distribution date was supposed to be on the 15th of November.
Due to the structural changes that the company is planning on making to the process, the plans for the record date and the distribution have been postponed to a time that is yet to be announced.
The digital dividends being offered by Overstock will be payable at 1:10 ratio. What this means is that one share provided in the Series A-1 will represent ten shares of the company’s common stock.
The existing digital dividend shares can be traded on the Pro Securities alternative trading system. The trading platform is run by tZERO, the blockchain arm of Overstock.
tZERO offers security tokens
In August, Overstock’s blockchain arm announced its plans to open the trade of its security tokens to the public. During this announcement, Saum Noursaheli, the CEO of tZERO, said that they were expecting as much as 50,000 new investors to begin trading their digital security tokens.
Most of these investors have already purchased Overstock’s shares, and hence, it would be easy for them to get into the trade of the digital dividend shares.