In First Stage of International Expansion, New JCO Model Opens Door to Small Investors and Startups with Compliant Hybrid of IPO and ICO
WEST PALM BEACH, Fla.–(BUSINESS WIRE)–December 19, 2017–
Finova Financial, a digital financial services provider transforming the future of global banking, announced today the first stage of international expansion for the world’s first equity-linked token, JOBS Crypto Offering (JCO), through a partnership with Canadian online investment platform FrontFundr. Finova’s token will carry the unique attribute of being linked to a share of equity in Finova and will provide for an ERC-20 Ethereum token standard that can not only be traded in cryptocurrency but is also backed by assets in a U.S. corporation.
“Our focus is on connecting investors and entrepreneurs. Using technology, FrontFundr makes it easier for entrepreneurs to raise money from a much larger investor community,” says FrontFundr CEO Peter-Paul Van Hoeken. “Finova’s JCO model is like the missing piece of the puzzle for everyday Canadians who have wanted to get in on the crypto-investing space but were shut out of ICO (Initial Coin Offering) opportunities due to accreditation requirements.”
Introduced in the U.S. in November, the JCO is a new crowdfunding mechanism using blockchain and cryptocurrency to create a hybrid of initial coin offerings (ICOs) and traditional initial public offerings (IPOs), allowing companies to raise capital more readily through cryptocurrency investments and an initial public offering of stock in compliance with the JOBS Act Regulation A+.
“FrontFundr in Canada and WeFunder in the U.S. are the first of what we hope will be many crowdfunding partnerships across the world,” says Finova CEO Gregory Keough. “We’re looking forward to building on the JCO concept globally because we think it’s the compliant alternative to the ICO and a perfect way to use the blockchain to help more companies raise capital and help more investors get in on crypto opportunities.”
Founded in 2015, FrontFundr has advocated the collaboration between the angel investor community and the emerging online investing sector. As the leading online investment platform in Canada, FrontFundr opened up investing in private companies for the public, democratizing investing in private companies.
JCO: How it Works
The JOBS Crypto Offering (JCO) is a new financing process that allows for companies to issue securities to the general public in exchange for cryptocurrency or other funds in compliance with SEC regulations. Ownership of such securities would be represented by entries in a distributed electronic network or database maintained by or on behalf of the Company in accordance with Section 224 of the Delaware General Corporation Law, which we refer to as Tokens. The Tokens would be listed on an Alternative Trading System that is compliant with Regulation ATS under the Securities Exchange Act of 1934, as amended.
For more information, visit: http://jco.finovafinancial.com
About Finova Financial
A digital financial services provider transforming the future of global banking, National Financial Holdings, Inc. (known as “Finova“) develops fair and affordable financial technologies to create a more inclusive financial system and provide a path to financial health for the 2 billion people outside of the traditional financial system. Founded in 2015 by a team of financial services, technology and payment experts, Finova is backed by leading Silicon Valley venture capital firms and Wall Street private equity investors.
For more information: www.finovafinancial.com
FrontFundr is Canada’s leading online investment platform connecting investors and vetted companies. Registered as an Exempt Market Dealer (EMD), FrontFundr uses technology to assist companies in raising capital from accredited and non-accredited investors through a streamlined online investment process.
For more information: www.frontfundr.com