Q&A

How does Digitorney use the funds raised with the STO?
How does Digitorney use the funds raised with the STO? 1024 682 Digitorney

Digitorney will finance its further growth with the capital raised from the STO: the money will be used especially for developing the already existing Blockchain-Messenger and adding new functions (e.g. payment function for legal fees). Furthermore, the attorney search service shall be fully digitized and the global network with country representatives will be expanded. Additionally, we will develop the digital marketplace “Digitorney Plus“ with digital services (including documents automation), legal contents and attorney marketing. Finally, we will invest in marketing significantly to increase our brand awareness worldwide.

 

Why is a securities prospectus not required for Digitorney STO?
Why is a securities prospectus not required for Digitorney STO? 1024 682 Digitorney

Because the STO of Digitorney is formed in accordance with the Dutch law, a securities prospectus is only required if it aims to raise over € 5 million from retail investors within 12 months.

Which financial risks do investors carry regarding Digitorney STO?
Which financial risks do investors carry regarding Digitorney STO? 1024 682 Digitorney

As any other IPO, there is a risk of a total loss of investment for investors because ultimately company shares of Digitorney Group B.V. are the underlying of each DGTY and typical entrepreneurial risks result consequently.

Moreover, it cannot be excluded that Digitorney’s business model may be restricted partially or fully in certain countries for regulatory reasons and therefore the growth is limited.

Which benefits do investors have from Digitorney STO?
Which benefits do investors have from Digitorney STO? 1024 682 Digitorney

Investors have the opportunity to become part of Digitorney’s success story: firstly, they can benefit in an increase of the enterprise value and take part in the equity upside if it comes to a sale in future. Secondly, they can trade DGTY on the secondary market once the listing with a licensed party has happened.

Which currencies can participate in the Digitorney STO?
Which currencies can participate in the Digitorney STO? 1024 682 Digitorney

You can only invest in Digitorney STO in Euro if credit card, bank transfer or Paypal are used. In addition, it is possible to convert accepted crypto currencies to Euro through Coingate.

Where or how can be invested in the Digitorney STO?
Where or how can be invested in the Digitorney STO? 1024 682 Digitorney

Digitorney sets up an online shop for the STO on its website. From there you can pay by credit card, bank transfer or Paypal in Euro and receive DGTY in return when the STO ends and all funds have been collected. The funding accounts will be blocked until the moment of distribution. CoinGate will be available as another payment method: investors can pay their DGTY in accepted crypto currencies which will be converted to Euro by CoinGate for Digitorney.

Which investors can participate in Digitorney STO?
Which investors can participate in Digitorney STO? 1024 646 Digitorney

In the first step (for the Pre-STO), we address to institutional investors, e.g. funds or familiy offices. In the second step, all investors, including private investors, can participate in Digitorney STO. For regulatory reasons, this is a Dutch transaction and investors based in Afghanistan, Bosnia and Herzegovina, Irak, Iran, Laos, North Korea, Syria, Uganda and Yemen cannot participate.

What is the time schedule for Digitorney STO?
What is the time schedule for Digitorney STO? 1024 682 Digitorney

Digitorney intends to implement initially a Pre-STO in fall 2018 by way of a private placement among institutional investors. On this basis, an STO will follow in winter 2018 which addresses to a broader group of investors.

The hard cap of the STO including Pre-STO amounts to € 5.0 million in total. Admission to trading on crypto exchanges, so called listing, shall take effect in the beginning of 2019.

How does the Digitorney STO work?
How does the Digitorney STO work? 1024 682 Digitorney

The Digitorney Foundation (STAK = Stichting Administratiekantoor under Dutch law) holds shares in Digitorney Group B.V. („DGBV“)as holding company of Digitorney Group.

The Foundation issues one certificate on each issued Digitorney-Share which certifies the economic value of the shares. Thereafter, Ethereum Tokens (“DGTY”) will be issued by the Foundation based on issued certificates. These tokens are Euro denominated and can be purchased by investors on the Netherlands based website of Digitorney while paying with credit card, Paypal or CoinGate.

Every DGTY provides voting rights and dividend rights, offers participation in the company value of DGBV and can be traded on eligible crypto exchanges presumably in the course of 2019. The listing (secondary market for exchange) of DGTY is regulated and requires necessary permits which are to be acquired.

What is an STO?
What is an STO? 1024 682 Digitorney

STO stands for Security Token Offering – a combination of Initial Public Offering (IPO, i.e. flotation of company shares) and Initial Coin Offering (ICO, i.e. raising of capital by issuing tokens as crypto currency).