Overstock, American e-commerce Retail giant, intends to ease up its projected dividend shares trading. As per recent news release, Overstock is working with regulatory experts on preparing its digital resource-based dividend openly tradable by non-members following the distribution.
Moreover, the organization would not need to place its profit shares on the half-year holding period as required under Rule 144 implemented by the United States SEC (Securities and Exchange Commission). Further, the actual date for the dividend was at first set for September 23rd, while the dividend distribution date was now scheduled for November 15th. Taking into account the most recent advancements, these plans are being delayed.
In the latest report by the New York Post asserts that Overstock’s previous CEO, Patrick Byrne, structured the digital resource-based dividend with an end goal to block short vendors. Furthermore, the newspaper announced that short vendors would not like to attach with blockchain-based profits and started to loosen up their short positions before the previously arranged dividend date, by inflating the price of Overstock’s stock.
Jonathan Johnson, interim CEO of Overstock, Commented on the development and said:
“We have received a great deal of interest surrounding our Series A-1 dividend from shareholders, broker-dealers, regulators, and the general market. It is innovative and ground-breaking in its design – one that is structured to comply strictly with existing regulatory standards and investor protections. It also introduces blockchain technology to enhance investor experience. It is an important step on the journey to demonstrate that blockchain technology has enormous potential to transform society for the better,”
Furthermore, Overstock’s digital dividend will be payable at a proportion of 1:10, which implies that one share of Series A-1 will be distributed for every ten shares of basic stock. Besides, existing shares of Series A-1 would now be able to be exchanged on the Pro Securities alternative trading framework, driven by technology possessed by Overstock’s blockchain backup tZERO.
Additionally, before resigning as CEO of Overstock, Byrne and Board of Directors of Overstock’s endorsed the issuance of blockchain-based digital security, which might be listed on the company’s tZERO security token exchanging platform. In addition to the part of the endorsement, the digital security must be going through a Financial Group brokerage account and a lockup period for six months from the date of issuance.