Morgan Creek Tokenizes Anexio’s Paper Shares
Converting shares into tokens
Morgan Creek Blockchain Capital is working on tokenizing a private company’s equity to turn the existing shares into new security tokens. Morgan Capital Management is forming a Blockchain wing and has announced that it’s working with Anexio Technology Services to convert their physical shares into ERC-20. ERC-20 allows the creation of Ethereum network tokens.
The capital management company is planning to raise 40 million dollars by selling the tokens. The tokens will, however, be sold to credited investors only. According to Morgan Creek chief investment officer Mark Yusko:
“We partnered with Anexio because we are confident about our economic position. More to that we are among the 500 fastest growing companies in the United States.”
On the side of Anexio, they have already qualified for financing through a bank which they did not mention. They, however, said that the financing gives them a sense of financial health in their business. Anexio has been producing graphical processing units which it will expand through the funds it expects to raise.
Morgan Creek Blockchain partner Anthony Pompliano said that the tokenization of Anexio’s shares has allowed the company to raise funds from a broad group of people. According to Anthony: “By tokenizing this business, we rook the cap table. We are tokenizing the paper shares after swapping one for one the paper shares for the tokens. This will allow global investors base and trades to security exchange.”
Another Morgan Creek Blockchain partner Jason William added that the tokens would have all benefits of a cryptocurrency however the underlying asset will remain a company with assets and cash flow.
Many companies have been tuning loses into profitability through venturing into cryptocurrency and ICOs. Companies like Kodak which were almost running bankrupt have turned around by starting crypto platforms like the mining of Bitcoin. As the crypto field continues to grow, we expect more companies to come in.