As Filip Pavic/Novac writes on the 20th of September, 2019, Greyp Bikes, an electric bike company owned by Croatian entrepreneur Mate Rimac, which is also the sister company to the famed Rimac Automobili, is launching a digital token public offering.
More specifically, starting on Monday, September the 23rd, Greyp is launching a crowdfunding campaign in which any interested investor, with a minimum stake of 100 euros, can become a stakeholder in Mate Rimac’s Greyp Bikes and stand by the side of giants such as Porsche, which holds an eleven percent stake there. Mate Rimac’s company notes that the investor thus exercises the right to vote in the company’s management decisions and has the right to the payment of dividends.
As Filip Nendl, project manager at Mate Rimac’s Greyp, explained, their public offering of tokens, namely equity token offering (ETO), is among the first such of fundraising models in the whole world. It’s not a classic listing on the stock market because it is done through blockhain technology, but neither is the ICO (initial coin offering) version of crowdfunding in the crypto-world, something that has been extremely popular in recent years.
Namely, unlike an ICO, in which the investor doesn’t enter into any sort of legal relationship with the company, with the ETO model, the investor becomes a shareholder of the company and as such, exercises certain rights. Therefore, investors in Greyp cannot be as anonymous like investors in an ICO can.
The procedure works in several stages. The first step is to identify a potential investor on the German Neufund platform where said would-be investor will have to leave their information.
The platform is similar to the well known Kickstarter, where, after a white listing process in which investors will express their interest, or pre-register for the purchase of unbound tokens, a private sale will start in which only they will be able to participate. Those who participate in the private purchase of tokens earn a ten percent discount. If all the tokens are not sold for private purchase after two weeks, the public sale of the tokens begins.
In this way, Greyp, whose current valuation is an impressive 45 million euros, aims to raise five million euros in investments. Thus, in addition to euros, the investor will be able to pay in Ether cryptocurrency, and in the same cryptocurrency a dividend will be paid out. There are only 30 stocks available, with one share equivalent to one million tokens valued at 0.161870 euros. The minimum investment is, as previously mentioned, 100 euros.
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