Security Token Offering
Innovative financing for small and medium-sized enterprises (SMEs) and corporations
Security token offering
- A Security Token Offering (i.e., STO) is the procedure through which the sale of financial instruments to the public is carried out, represented by digital tokens.
- The token is a digital tool for the representation of an underlying real asset, i.e., a security (e.g., share, bond, derivative, property, title of property, etc.), which entitles the holder to receive future cash flows and it perfectly mimics the behaviour.
- A company can issue security tokens following the standard procedure for issuing financial instruments to the public, which generally provides (according to different methods from country to country) the publication of a prospectus.
- Then, Tokens can be listed on an ad hoc market and sold against traditional currency or/and cryptocurrency.
Comparative advantages of STO compared to private equity and initial public offering
Our target
We are looking to list high-quality securities. We will always run an initial due diligence before onboarding any new project. In case of established companies, we are looking for a solid track record with a compelling industrial plan and a successful management team. Start-ups will be considered only in exceptional case and will be listed in a separate area of the Andriotto Marketplace.
Security tokenization process
What We Do
We conduct a review of company financials, history, SWOT analysis, organization charts, and other factors to determine the overall health, value and direction of the company.
Also, we conduct a preliminary independent valuation of the price range and we run an early investor engagement.
We prepare all the necessary documentation to present the deal to institutional investors and to the retail market.
We directly take care of the legal aspects of the STO. For example:
– writing a prospectus in compliance with the security law;
– obtaining the necessary authorization from the market authority;
– reviewing all the documentation from the legal perspective; and
– writing disclaimers and contracts related to the deal.
We have partnerships with fiscal experts both in Switzerland and Europe to provide the necessary support to our clients.
AFS has a proven process for the public sale and private placement of the securities originated:
Listing
AFS Investment Marketplace is a decentralized exchange for security tokens and represents the main choice for security token offering of Small and Medium-Sized Enterprises. It offers a unique combination of liquidity, cost optimization, speed, compliance (initial and ongoing), disclosure requirements and global visibility.
Choosing the most appropriate marketplace may not be straightforward. This decision depends on a number of questions: speed and efficiency of listing, liquidity in the secondary market, overall growth strategy and goals, regulatory requirements and compliance (initial and ongoing), costs involved, size of the company, stage in company’s development, etc. AFS can help you to determine which options are best for your company, providing the expertise and insight needed for the listing on any security exchange.