Overstock to be restricted accomplice 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), at present declares it will likely 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 monitor report of efficiently investing in early stage corporations, will act as the overall accomplice of the Fund.
“Blockchain know-how represents a leap ahead in essentially altering the way in which we work together and transact with one another. Since 2014, we’ve got made investments in and advocated on behalf of corporations advancing blockchain know-how,” mentioned Overstock chief government officer Jonathan Johnson. “We stay bullish on blockchain know-how however are altering the way in which we work together with these belongings. As we evaluated how you can create the very best return for our shareholders, we decided it’s time to accomplice 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 corporations and has helped information many corporations to financial success.”
“We’re honored Overstock chosen us to maximise the worth of its blockchain belongings,” mentioned Pelion Ventures founder and basic accomplice Blake Modersitzki. “Many of those corporations have actual potential. We consider our crew is aware of how you can assist them attain that potential.”
Below the association, which can shut after acquiring vital authorized and regulatory approvals, Medici Ventures will likely be transformed right into a restricted partnership. Overstock will likely be a restricted accomplice within the Fund. After closing, the Pelion entity can have sole authority and accountability concerning investing selections, appointing board members of the portfolio corporations, and exercising all shareholder rights for belongings Medici Ventures at the moment 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 cut up income 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 correct resolution to assist us maximize the worth of those belongings, and we’re delighted to have discovered a talented and educated accomplice in Pelion,” continued Johnson. “We consider this construction gives the very best alternative for Medici Ventures’ corporations 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 improvement and design companies to its portfolio corporations. As an on-going advocate of blockchain know-how, Overstock will proceed to simply accept Bitcoin as a type of cost 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 contributors. Questions may be submitted to firstname.lastname@example.org upfront.
To entry the dwell webcast and presentation slides, go to http://investors.overstock.com. To take heed to the convention name by way of phone, dial (877) 673-5346 and enter convention ID quantity 2918945 when prompted. Members exterior the U.S. or Canada who would not 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 will likely be accessible at http://investors.overstock.com two hours after the dwell name has ended. An audio replay of the webcast will likely be accessible by way of phone beginning at 11:30am ET on Tuesday, January 26, 2021, by 11:30am ET on Tuesday, February 9, 2021. To take heed 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 Frequent Inventory (NASDAQ:OSTK) / Collection A-1 Most well-liked Inventory (tZERO ATS:OSTKO) / Collection B Most well-liked Inventory (OTCQX:OSTBP) is a web based retailer and know-how firm primarily based in Salt Lake Metropolis, Utah. Its main e-commerce web site sells a broad vary of recent residence merchandise at low costs, together with furnishings, décor, rugs, bedding, residence enchancment, and extra. The web procuring web site, which is visited by tens of tens of millions of consumers a month, additionally contains a market offering clients entry to tens of millions of merchandise from third-party sellers. Overstock was the primary main retailer to simply accept cryptocurrency in 2014, and in the identical 12 months 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 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 emblems of Overstock.com, Inc. Different service marks, emblems 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 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 world keiretsu of groundbreaking blockchain-focused corporations targeted on constructing the inspiration of a know-how stack for civilization. Medici Ventures’ corporations 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 monitor report 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 accomplice to main know-how innovators CloudFlare, Fusion-io, MX Logic, RedHat, and Riverbed. Extra at www.pelionvp.com.
Cautionary Be aware Concerning Ahead-Trying Statements
This press launch comprises sure forward-looking statements inside 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 might be on condition that regulatory approval will likely be granted and the preparations with Pelion will likely be consummated. Further data concerning 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 12 months 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 Could 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.