RALEIGH, N.C., Feb. 27, 2018 /PRNewswire/ -- Causam eXchange, Inc., a privately-held advanced energy financial settlements company, today announced the development of the first Blockchain Instrument for Transferable Equity (BITE), an equity security that is tokenized in a smart contract executed on the Ethereum Network. The equity offering, which will be made pursuant to Securities and Exchange Commission (SEC) Rule 506 (c), will be open to a maximum of 1,000 U.S. accredited investors. The presale will go live on March 8, 2018 at 10:00 a.m. ET. Causam aims to raise $15 million.
Causam eXchange is like Visa for the electric grid, using its EnergyNet platform and blockchain to enable real-time financial transactions to make the power grid more renewable, distributed, digital, connected, and secure.
To date, Initial Coin Offerings (ICOs) and related blockchain-based crowdsale offerings have sold billions of dollars of tokenized "utility" currencies that may someday be used to pay for future technology and services to be developed using offering proceeds. By assuming the coins or tokens were not securities, even well intentioned ICOs landed in a regulatory battlefield.
In a February 6, 2018 testimony on virtual currencies before the United States Senate, SEC Chairman Jay Clayton stated "I believe every ICO I've seen is a security." He warned that "merely calling a token a 'utility' token or structuring it to provide some utility does not prevent the token from being a security."
"Causam believes ICOs are broken," said Joe Forbes, Jr., founder and CEO of Causam eXchange. "We are listening to the SECs warnings. Our BITE Token is 100% a security that gives investors a real equity interest in our business, and provides a compliant framework for innovators to finance transformational blockchain technology while protecting investors and meeting existing SEC offering regulations."
Disclosures to investors about Causam's business and their rights as holders of BITE Tokens are far more detailed than the White Papers being used for other blockchain related offerings.
Causam's BITE token offering is powered by its BITE Investment Website and smart contract that will execute and record purchases of BITE tokens on the Ethereum Network during and after the offering to minimize the cost and delays of a typical stock transfer system.
Causam will offer an up to 40% volume discount of its BITE tokens during a limited presale period beginning March 8, 2018. The per token purchase price will increase once the general sale begins on April 8, 2018.
"Causam will help building owners and energy providers increase profits, reduce costs and automate smart energy financial contracts that ultimately advance global clean energy goals," stated Tom Gordon, Causam eXchange's chief operating officer. "Unlike other blockchain-only firms, our platform does not rely on creating an independent exchange to buy and sell energy. It has the unique ability to settle energy transactions with the traditional energy markets, revolutionizing how power is bought and sold."
Causam's EnergyNet platform is available today for demonstration to interested customers. Proceeds from the offering will primarily be used to add and customize features, for marketing and sales and general corporate purposes.
ABOUT CAUSAM EXCHANGE
With one of the world's largest patent portfolios in electric power financial settlements and payments, Causam eXchange helps solve problems related to scaling and compensating distributed energy resources (DERs) such as solar and energy storage, limited customer electricity choice and access to energy data, high transaction costs, slow and inaccurate financial settlements, cybersecurity risks, and climate change. Its EnergyNet platform works with any metering and Internet of Things (IoT) hardware to help (1) building owners to become virtual power plants, reduce operating costs, and improve building value, and (2) energy providers to aggregate clean energy resources such as solar and storage, improve customer satisfaction, and boost profits.
For more information on Causam's BITE offering, visit bite.causamexchange.com
Some statements in this release may contain forward-looking statements and are based upon current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements.
SOURCE Causam eXchange