STO: Ideal for Financing of new Projects or Growth
Sometimes companies have new ideas for projects that are either to be realized separately from their traditional business or cannot be financed from cash flow. Or, additional budgets are also required for growth investments in production or in global market development, for which there are also financing alternatives: e.g. crowd financing or corporate bonds. Howev-er, these financing options are finite, i. e. the associated loan must be repaid after 2 to 5 years. Another innovative option is to issue tokens via a STO.
STOs also have other significant advantages: With a STO, crypto tokens are generated and sold to investors worldwide. Since these tokens are securities, the token buyers can also receive a share in profits or interest and often even profit if the company is sold once. Additional advantages include the fact that it is relatively easy to meet all the requirements (including a securities prospectus) for a STO and that the company does not have to provide any collateral. A STO can be realized within 3-5 months with manageable costs.
At the same time, tokens are not shares, i. e. the token owner (usually) does not receive any direct shares in the company or voting rights. There is therefore no dilution of the old owners in the case of capital measures, but the company receives the required growth capi-tal. A win-win situation par excellence. And after a few years of company growth and value appreciation, an IPO can be an ideal exit for token owners. IR CONSULT supports all indi-vidual financing steps thanks to an early and comprehensive planning and thus accelerates the realization.
About IR CONSULT:
The founder, Alexander Vollet, holds a degree in industrial and business engineering and worked for 8 years as an equity analyst at Deutsche Bank, UBS and SEB-Bank. He holds the DVFA award as "Investment Analyst" and the bdvb certification as "Independent Man-agement Consultant". 25 years ago, he founded IR CONSULT (www.ir-consult.de) as a specialist management consultancy for IPOs and fundamental investor relations. The highly experienced IRC team has realized almost 100 IPOs to date and has managed more than 100 investor relations mandates.
Since 2017, we also support ICO/STO candidates to successfully implement their STO (www.sto-ico.de). IRC has established its own international cooperation network, which is very helpful in the realization of capital measures. All in all, we improve the realization chances of capital market transactions and accelerate the decision-making process for in-vestors.