06. MESSAGE TO ISSUERS
WIDER INVESTOR BASE and more liquidity
An STO is a faster and easier capital raising method than traditional methods.Attracts a different investor base to the mining and metals sector. May attract totally new classes of investors with wider geography and potentially more investment. Tokenizing allows infinite fractioning which further drives liquidity.
reduced administration costs and limited disclosure requirements
Limited disclosure requirements - whitepaper and website. Lower transaction costs compared to traditional investment contracts. Eliminates record keeping costs.
Asset segregation for financing purposes
Can create more attractive investment offerings through parceling of various assets to specified criteria: risk, geography, nature of product etc. Can mitigate risks by separately financing certain assets with higher or lower degrees of risk.
Tap into existing platform investor base and shared marketing costs.Leverage credibility of the platform. Add certainty that token is issued in accordance with regulations. Provides comfort to investors that token is robust and regulated, opening door to institutional investors. Possibility to code regulations and investment contracts into the token, allowing issuers to authorize trading rapidly.