SEFtoken

Offering Details

• Offering Type Hybrid Structure
• Offering Memorandum Click to view
• Token Benefits & Rights: Warrant

Offering Terms Description:

The SEFtoken Security Token Offering is an advanced structured covered warrant with the underlying asset being a fully licensed electronic Swap Execution Facility (“SEF”) in an existing FMI. Its fully licensed SEF derivatives trading infrastructure facility, which is being tokenized and offered as an investment security infrastructure asset to sophisticated and professional investors who are accredited investors under SEC regulations. The SEFtoken provides an opportunity for investment exposure to a security in an industry with high regulation and high barriers to entry.

The SEFtoken covered warrant will be issued by SEFtoken, Inc. (Issuer). The Issuer will be issued shares in Mercari sufficient to convert SEFtokens issues to Mercari shares. The SEFtoken will be a security pursuant to the Securities Act but is exempted from registration with the SEC. However, the SEFtoken will be a restricted security which means there will be a holding period of 12 months (Holding Period). On the expiry of the Holding Period, the SEFtokens will tradeable on Issuer-designated exchanges/platforms.
In accordance with the terms of the covered warrant encoded into the smart contract, the SEFtoken’s exercisable right to convert to Mercari shares will only be exercisable two (2) years after issue. The SEFtokens will expire seven (7) years after issuance.

Token Distribution Details:

Proceeds Allocation:

Mercari Use of Funds: Soft Cap (USD 31.25m), Hard Cap (USD 125m)

Held for the significant regulatory capital and additionally the working capital to further expand and develop the current operational eSEF infrastructure. Build and deploy the Mercari DLT Execution System to cater for T+0 settlement on existing ASIC approved financial products as well as development of the Mercari Tokenized Securities Market being development of the proprietary DLT platform for trading of financial products and tokenized Securities (subject to regulatory approval).

SC - 15,480,438, HC - 52,195,500
Legal and Regulatory work on regulatory applications for license variation, rule changes and other regulatory applications for the approval of the listing of the meta class of tokenized securities. Design and development of new product categories to cater for Australian regulated framework
SC - 2,814,625 HC - 8,119,300

Participation and joint venture in regulated market infrastructure projects in first world jurisdictions.
SC - 7,036,563 HC - 46,396,000

Investment in FMI connectivity for expansion of sales distribution into global markets for current and proposed digital products (subject to regulatory approval) and general marketing for the exchange infrastructure.
SC - 2,814,625 HC - 9,279,200