As you may know, tokens are divided into two main classes: utility tokens and securities tokens. And while there are thousands of utility tokens, there is no token that falls into the tokenized security class. This is because tokenized securities need to follow strict regulations posed by the SEC and other national regulators, that dev teams do not wish to, or simply cannot, comply. Quite a few of them, choose to disguise their security tokens as utility ones, in hopes the regulators won't find out - with Ripple being the first to pay the price for following such tactics.
At ScreenTag, we do not try to avoid compliance with regulations. In fact, we strive to be compliant. Thus, when we started putting together our financing plan, it was natural to us to have a large part of our common stock (actually, up to 25% of our authorized capital) to be converted into crypto tokens.
And this is how SCRTG (or ScreenTag) was born.
What is SCRTG?
As mentioned earlier, SCRTG is the tokenized representation of our common stock, with one token being equal to one share of common stock (1:1 ratio), bearing all rights and privileges of stock ownership, including voting rights and (unlike other 'utility tokens') right to receive dividends. It was built on the Ethereum platform (https://etherscan.io/address/0xe8895eddb26b952a2faafcaa45af59b564ed2a59), with our founders and two of our investors converting all their stock in SCRTG, and another 1,517,500 tokens being stored in our escrow account for future distribution.
On March 23rd, we will initiate our Seed Round, under Rule 506 (c) of Regulation D, offering 117,500 SCRTGs at $0.96 each, or the equivalent in USDC, or ETH.
What are the terms of the SCRTG offer?
Under Rule 506 (c) of Regulation D, this is a private offer intended only for accredited investors within the US, and other limitations for investors in other countries. Since the status of each investor, depending on his/her country of origin, may vary, we will be informing each applicant regarding eligibility, on a case-by-case basis.
However, even if an applicant is not eligible to participate in this Seed Round, submission of an application will lock the price at $0.96 for our Regulation CF Round, planned for December 2022, representing a discount of 80%. This means that applicants in this Seed Round that are not eligible to participate, will have the opportunity to invest during our Crowdfunding Round, at the same price they would be investing in this round.
Investors should bear in mind, that since this is a fully compliant securities offer, our investors will have to go through KYC and AML checks (where applicable), prior to investing in our Seed Round - we will be doing that in the least intrusive manner.
Are SCRTG tokens going to be listed in an exchange?
We know investors need at some point to cash-out part or all their investment, and this is only done by having ScreenTag listed in an exchange. Thus, we do plan to have SCRTG listed in an exchange by the end of 2023, right along with our listing of our 'paper stock' to NYSE. Bear in mind though that this listing will be with a centralized (preferably licensed) exchange, since we need to stay compliant with SEC regulations. In addition, the exchange will be serving as the distributor of any future dividends to our token holders.
Having our 'paper stock' and tokens listed for trading simultaneously, is expected to have a positive effect to the price stability of SCRTG.
Is there a white paper where I can get more information?
We are required by the SEC to have an offering document available to our potential investors. However, since this document shall contain sensitive information regarding our business, we will be making it available (starting on March 23rd) only to those submitting an application to invest through our website, are eligible to invest, and complete a basic KYC check.
To start your application and get more information, fill-in the short form in our investors page here: https://www.screentag.mobi/invest
