Symboli to Conduct STO, Plans First Cannabis Dividend
Cannabis company Symboli is about to create its own token and conduct a security token offering, allowing holders to receive dividend payments.
California-based Symboli announced on Tuesday it planned to develop a blockchain-based token and issue it through a security token offering (STO) in accordance with US law. The funds generated will go into the acquisition of five Los Angeles cannabis retail locations, whose annual sales are projected to top $100 million in 2019.
The Symboli token will enable holders to receive cash dividends. The move is intended to support the company as it expands its business in California.
To facilitate the distribution, Symboli will use the so-called Cannabis Dividend, which will come with a 100% payout ratio of the entire net earnings generated during the first three years after the purchase of the five operations. The dividends will be paid to Symboli token holders, who are expected to receive a total of $112 million from 2019-2021.
Symboli, which will be an ERC-20-based token, will be released through a public pre-sale round and an STO in the first quarter of next year. The company will then organize its token generation event and list the asset on crypto exchanges.
Symboli CEO Peter Brian commented:
“Growing adoption of marijuana in medical applications such as cancer, mental disorders, and chronic pain will propel revenue growth and a global wave of deregulations in marijuana will allow 2 billion people in America and Europe alone to shop for cannabis, creating huge profits for the industry and Symboli.”
“Symboli will own and operate five of those coveted retail locations based in Los Angeles, California, with more than $400 million in gross sales (over 3 years) and $112 million in Cannabis Dividend® distributions. Given the current view on Cannabis, the potential for future growth is tremendous.”
The company will carry out the STO from the US, with its blockchain technology being developed by Swiss-based subsidiary Symboli LLC Zug - a member of the Crypto Valley Labs and the Crypto Valley Association. To ensure a high degree of security, Symboli has partnered with UbiVault.
While security tokens are generally backed by real-world assets such as company stock, real estate, or commodities, some ventures choose to tokenize their revenue similarly to Symboli. For example, Lithuania-based DESICO is releasing a security token that allows holders to receive 12.5% of the total revenue.