KodakOne Token Kicks Оff Later This Month
Kodak aims to raise up to USD 50 million from the much anticipated ICO
US photo giant Kodak expects to raise up to USD 50 million in the final phase of its blockchain platform KodakOne’s Initial Coin Offering (ICO) later this month.
The developer of the token Wenn Digital, which worked together with Kodak, said on Thursday that the sale will take place on May 21. Initially, the offering of the platform’s token dubbed KodakCoin was scheduled for January 31 but was delayed for what was originally said to be a several-week period in order to evaluate the status of potential investors.
Kodak and Wenn Digital partnered in January to develop the image protection blockchain platform KodakOne. The platform is expected to launch a beta version later this year. It will serve as a one-stop shop for photographers’ management, protection and distribution needs by providing an image marketplace where users can buy, sell and trade photos based on licensing terms and conditions.
The sale of the token will be hosted on Cointopia, and coins will be priced at USD 1.00. The offering will be overseen by Pickwick Capital Partners and Exemplar Capital, both of whom are registered with the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) as broker-dealers.
The KodakCoin offering will be legally compliant with the SEC, using an instrument called the Simple Agreement for Future Tokens (SAFT). SAFT provides that participation is restricted to accredited investors, guaranteeing safety and transparency to the offering. In such a sale, no tokens are offered, sold or exchanged, instead, money is exchanged for paper documents that promise access to a future product.
A similar cryptocurrency, Filecoin, used the same offering strategy in August and September last year, raising around USD 200 million.
“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 Wenn Digital CEO Jan Denecke. “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 we hope instills public confidence in the crypto space.”
Wenn Digital has already run a pre-sale of the token to accredited investors and reportedly raised nearly USD 10 million. KODAKOne Chairman and Co-founder Cam Chell told Reuters in an interview on Thursday that demand is greater than the developer’s capital requirement of USD 20 million. “I think USD 50 million is our sweet spot,” he remarked.
Public filings revealed in March that Wenn Digital paid Kodak a USD 750,000 licensing fee for the rights to use Kodak branding on its platform, along with approximately USD 1.25 million worth of Wenn common stock. Under the deal, Kodak will also receive three million KodakCoins and undisclosed royalties tied to the performance of the token sale.