Overstock to be restricted associate in blockchain fund
Investor name scheduled for January 26, 2021, at 8:30 a.m. ET
SALT LAKE CITY, Jan. 25, 2021 (GLOBE NEWSWIRE) — Overstock.com, Inc. (NASDAQ:OSTK), right this moment publicizes it is going to be changing Medici Ventures, Inc., its wholly owned blockchain-focused subsidiary, to a restricted partnership (the “Fund”). An entity inside Pelion Venture Partners, a third-party enterprise capital agency with a confirmed observe document of efficiently investing in early stage firms, will act as the final associate of the Fund.
“Blockchain know-how represents a leap ahead in basically altering the best way we work together and transact with one another. Since 2014, we have now made investments in and advocated on behalf of firms advancing blockchain know-how,” stated Overstock chief govt officer Jonathan Johnson. “We stay bullish on blockchain know-how however are altering the best way we work together with these belongings. As we evaluated tips on how to create the best return for our shareholders, we decided it’s time to associate with a seasoned enterprise capital agency to supervise the portfolio and make follow-on funding selections. Pelion is the right agency to do that. It has blockchain and know-how experience with early stage firms and has helped information many firms to financial success.”
“We’re honored Overstock chosen us to maximise the worth of its blockchain belongings,” stated Pelion Ventures founder and common associate Blake Modersitzki. “Many of those firms have actual potential. We imagine our staff is aware of tips on how to assist them attain that potential.”
Beneath the association, which can shut after acquiring vital authorized and regulatory approvals, Medici Ventures can be transformed right into a restricted partnership. Overstock can be a restricted associate within the Fund. After closing, the Pelion entity can have sole authority and accountability concerning investing selections, appointing board members of the portfolio firms, and exercising all shareholder rights for belongings Medici Ventures at present holds. The Fund can have an eight-year life and a complete capital dedication of $45 million. The Fund will return invested capital to Overstock first after which break up earnings on profitable exits as set forth within the Fund’s Restricted Partnership Settlement. The Fund will maintain a big minority possession stake in tZERO Group, Inc. (“tZERO”) and Overstock will retain a direct minority fairness curiosity in tZERO.
“Now we have been on the lookout for the proper answer to assist us maximize the worth of those belongings, and we’re delighted to have discovered a talented and educated associate in Pelion,” continued Johnson. “We imagine this construction provides the most effective alternative for Medici Ventures’ firms to have significant exits and permits Overstock executives to give attention to its core ecommerce enterprise, which realized great income, revenue, and market share progress in 2020.”
Medici Ventures will discontinue offering software program growth and design companies to its portfolio firms. As an on-going advocate of blockchain know-how, Overstock will proceed to just accept Bitcoin as a type of fee for merchandise bought on its web site.
The corporate has scheduled a convention name and webcast for 8:30am ET on Tuesday, January 26, 2021, to debate this announcement and take questions from members. Questions may be submitted to firstname.lastname@example.org prematurely.
To entry the reside webcast and presentation slides, go to http://investors.overstock.com. To hearken to the convention name through phone, dial (877) 673-5346 and enter convention ID quantity 2918945 when prompted. Members exterior the U.S. or Canada who don’t have web entry ought to dial +1 (724) 498-4326 and enter the convention ID offered above when prompted.
A replay of the convention name can be obtainable at http://investors.overstock.com two hours after the reside name has ended. An audio replay of the webcast can be obtainable through phone beginning at 11:30am ET on Tuesday, January 26, 2021, by means of 11:30am ET on Tuesday, February 9, 2021. To hearken to the recorded webcast by cellphone, dial (855) 859-2056 and enter the convention ID offered above. Exterior the U.S. or Canada, dial +1 (404) 537-3406 and enter the convention ID offered above.
Overstock.com, Inc Widespread Inventory (NASDAQ:OSTK) / Collection A-1 Most well-liked Inventory (tZERO ATS:OSTKO) / Collection B Most well-liked Inventory (OTCQX:OSTBP) is an internet retailer and know-how firm based mostly in Salt Lake Metropolis, Utah. Its main e-commerce web site sells a broad vary of recent dwelling merchandise at low costs, together with furnishings, décor, rugs, bedding, dwelling enchancment, and extra. The net procuring web site, which is visited by tens of thousands and thousands of shoppers a month, additionally includes a market offering clients entry to thousands and thousands of merchandise from third-party sellers. Overstock was the primary main retailer to just accept cryptocurrency in 2014, and in the identical yr based Medici Ventures, its wholly owned subsidiary devoted to the event and acceleration of blockchain applied sciences to democratize capital, remove middlemen, and re-humanize commerce. Overstock often posts details about the Firm and different associated issues on the Newsroom and Investor Relations pages on its web site, Overstock.com.
O, Overstock.com, O.com, Membership O, and Worldstock are registered logos of Overstock.com, Inc. Different service marks, logos and commerce names which can be referred to herein are the property of their respective homeowners.
About Medici Ventures
Launched in 2014, Medici Ventures has been an entirely owned subsidiary of Overstock.com, Inc. created to leverage blockchain know-how to unravel real-world issues with clear, environment friendly, and safe options. Medici Ventures had pursuits in a worldwide keiretsu of groundbreaking blockchain-focused firms targeted on constructing the inspiration of a know-how stack for civilization. Medici Ventures’ firms are introducing blockchain know-how to industries together with identification, land governance, cash and banking, capital markets, provide chain, and voting. The corporate’s majority-owned monetary know-how firm, tZERO, executed the world’s first blockchain-based inventory providing in December 2016.
About Pelion Ventures Companions
Pelion is an early stage know-how enterprise capital agency with a nationwide observe document of investing in software-based companies that handle the exponential progress within the motion of data, or “bits,” throughout wired and wi-fi networks. Based in 1986, Pelion has been a associate to main know-how innovators CloudFlare, Fusion-io, MX Logic, RedHat, and Riverbed. Extra at www.pelionvp.com.
Cautionary Be aware Relating to Ahead-Trying Statements
This press launch comprises sure forward-looking statements throughout the which means of Part 27A of the Securities Act of 1933 and Part 21E of the Securities Trade Act of 1934. Such forward-looking statements embody all statements aside from statements of historic truth, together with however not restricted to statements concerning the closing of the association with Pelion and expectations with respect to the efficiency of Pelion and the Fund. No assurance may be on condition that regulatory approval can be granted and the preparations with Pelion can be consummated. Extra info concerning elements that would materially have an effect on outcomes and the accuracy of the forward-looking statements contained herein could also be discovered within the Firm’s Annual Report on Type 10-Ok for the fiscal yr ended December 31, 2019, which was filed with the SEC on March 13, 2020, in our Type 10-Q for the quarter ended March 31, 2020, which was filed with the SEC on Could 7, 2020, in our Type 10-Q for the quarter ended June 30, 2020, which was filed with the SEC on August 6, 2020, in our Type 10-Q for the quarter ended September 30, 2020, which was filed with the SEC on November 5, 2020, and in our subsequent filings with the SEC.