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 now broadcasts 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 file of efficiently investing in early stage firms, will act as the final associate of the Fund.
“Blockchain expertise represents a leap ahead in essentially altering the best way we work together and transact with one another. Since 2014, now we have made investments in and advocated on behalf of firms advancing blockchain expertise,” mentioned Overstock chief government officer Jonathan Johnson. “We stay bullish on blockchain expertise however are altering the best way we work together with these belongings. As we evaluated the best way to create the very 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 expertise 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,” mentioned Pelion Ventures founder and normal associate Blake Modersitzki. “Many of those firms have actual potential. We imagine our crew is aware of the best way to assist them attain that potential.”
Underneath 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 may have sole authority and duty relating to investing selections, appointing board members of the portfolio firms, and exercising all shareholder rights for belongings Medici Ventures presently holds. The Fund may 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 major minority possession stake in tZERO Group, Inc. (“tZERO”) and Overstock will retain a direct minority fairness curiosity in tZERO.
“We have now been in search of the fitting resolution 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 affords the perfect alternative for Medici Ventures’ firms to have significant exits and permits Overstock executives to deal with its core ecommerce enterprise, which realized large income, revenue, and market share progress in 2020.”
Medici Ventures will discontinue offering software program growth and design providers to its portfolio firms. As an on-going advocate of blockchain expertise, 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 might also be submitted to firstname.lastname@example.org upfront.
To entry the dwell webcast and presentation slides, go to http://investors.overstock.com. To hearken to the convention name by way of phone, dial (877) 673-5346 and enter convention ID quantity 2918945 when prompted. Contributors outdoors the U.S. or Canada who should not have web entry ought to dial +1 (724) 498-4326 and enter the convention ID supplied above when prompted.
A replay of the convention name can be out there at http://investors.overstock.com two hours after the dwell name has ended. An audio replay of the webcast can be out there by way of phone beginning at 11:30am ET on Tuesday, January 26, 2021, by 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 supplied above. Exterior the U.S. or Canada, dial +1 (404) 537-3406 and enter the convention ID supplied above.
Overstock.com, Inc Widespread Inventory (NASDAQ:OSTK) / Sequence A-1 Most popular Inventory (tZERO ATS:OSTKO) / Sequence B Most popular Inventory (OTCQX:OSTBP) is a web based retailer and expertise firm based mostly in Salt Lake Metropolis, Utah. Its main e-commerce web site sells a broad vary of latest residence merchandise at low costs, together with furnishings, décor, rugs, bedding, residence enchancment, and extra. The web buying web site, which is visited by tens of tens of millions of shoppers a month, additionally encompasses a market offering prospects entry to tens of millions 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, eradicate middlemen, and re-humanize commerce. Overstock commonly 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 house owners.
About Medici Ventures
Launched in 2014, Medici Ventures has been a completely owned subsidiary of Overstock.com, Inc. created to leverage blockchain expertise to unravel real-world issues with clear, environment friendly, and safe options. Medici Ventures had pursuits in a world keiretsu of groundbreaking blockchain-focused firms targeted on constructing the inspiration of a expertise stack for civilization. Medici Ventures’ firms are introducing blockchain expertise to industries together with identification, land governance, cash and banking, capital markets, provide chain, and voting. The corporate’s majority-owned monetary expertise firm, tZERO, executed the world’s first blockchain-based inventory providing in December 2016.
About Pelion Ventures Companions
Pelion is an early stage expertise enterprise capital agency with a nationwide observe file of investing in software-based companies that handle the exponential progress within the motion of knowledge, or “bits,” throughout wired and wi-fi networks. Based in 1986, Pelion has been a associate to main expertise 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 incorporates 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 apart from statements of historic reality, together with however not restricted to statements relating to the closing of the association with Pelion and expectations with respect to the efficiency of Pelion and the Fund. No assurance might be on condition that regulatory approval can be granted and the preparations with Pelion can be consummated. Extra data relating to elements that might 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 Kind 10-Okay for the fiscal yr ended December 31, 2019, which was filed with the SEC on March 13, 2020, in our Kind 10-Q for the quarter ended March 31, 2020, which was filed with the SEC on Might 7, 2020, in our Kind 10-Q for the quarter ended June 30, 2020, which was filed with the SEC on August 6, 2020, in our Kind 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.