A U.S. company has raised $50,000 in what may be the first instance of a public company receiving cryptocurrency-secured funding.
Public Company Raises Cryptocurrency-Secured Funding
As detailed in documents filed with the Securities and Exchange Commission (SEC), Integrated Ventures, Inc. (OTCMKTS:INTV) issued a $50,000 convertible note to Global Opportunity Group, LLC in exchange for the latter company relinquishing a warrant that entitled it to purchase 803,333 shares of Integrated Ventures stock.
According to the filing, Integrated Ventures must pay back the note, plus interest, by Dec. 18, 2018. The default payment option is cash, but the company also has the option to prepay the outstanding balance — along with an early-payoff penalty — using cryptocurrency.
“Borrower’s election to exercise its right to prepay in Crypto Currency must be made by depositing in the Holder’s account at Coinbase the Crypto Redemption Amount and simultaneously sending a notice in writing to Holder. Crypto Currency shall mean any digital currency (e.g. bitcoin, ethereum, and litecoin) for which there is an active trading market at www.Coinbase.com,” the filing reads.
The Pennsylvania-based investment firm said in a statement published on its website that this was the first time a public company has raised cryptocurrency-secured funding, but CCN has been unable to verify this claim.
INTV Stock Soars After Pivot to Blockchain
Earlier SEC filings reveal that Integrated Ventures — formerly known as EMS Find — entered the cryptocurrency space in July 2017, apparently attempting — like many small firms in the news recently — to capitalize on the cryptocurrency boom. The company’s portfolio includes a cloud mining company, as well non-cryptocurrency related projects such as ridesharing and medical transport smartphone apps.
In the months following the rebrand, INTV shares soared from 15 cents to an all-time high of $5.91, although the company’s stock has since dropped to $2.42.
Even after the pullback, INTV stock is up more than 1,500 percent since the rebrand, marking yet another data point in the growing trend of companies — a group that includes sports bra manufacturers, beverage producers, and even cigar companies — experiencing meteoric share price increases after signaling a transition into the blockchain space.
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Source : CryptoCoinNews