Tron has filed documents with the U.S. Securities and Exchange Commission and has registered securities up to $1 billion.
Form S-3 Shelf Registration allows a company to raise capital by providing a combination of common stock, preferred stock, warrants, liabilities, rights, or bundled units. Tron We did not disclose any specific dates, prices or plans for actual offerings.
According to an SEC filing, Tron made the decision weeks after completing its $100 million private investment in a public equity agreement on June 16. The agreement sold 100,000 shares of Series B preferred shares.
The warrant matches the conversion price and expires in two years. On June 28th, investors paid in full TRX Tokenwhich was assessed based on the closing price on June 15th and deposited in a managed wallet established by BIT Global Trust Limited, a trust company registered in Hong Kong.
The TRX Fund is currently administered by the Tron board of directors, with Zhihong Liu, one of the newly appointed directors, also serving on the Bit Global board of directors. Preferred stocks are limited to a 19.99% conversion cap until shareholders vote otherwise. Liu, Tron’s Director and Senior Advisor, said:
Tron develops new boards, new conditions and bigger bets on TRX
The June deal was accompanied by internal changes. Justin Sun has signed an advisory agreement with the company as part of the transaction. His father, Weike Sun, owned the investor entity and was appointed chairman of the board on the same day.
Zhihong Liu and Zi Yang also joined the board. Liu, 59, previously served senior roles at Ant Financial, Fidelity and Nomura, while Yang, 27, has worked in multiple blockchain projects and leads the operation of Tronscan.
Series B stocks equal the number of common stocks whose voting power is converted to. However, voting rights are limited to 19.99% until shareholder approval begins.
We have confirmed that stock splits, dividends, or basic trading trigger adjustments for both conversion and motion conditions. In the event of such a transaction, investors may request a cash out of Black Shoals on the basis of a warrant. Tron does not intend to list these securities in the US exchange.
The June deal also included changes to employment contracts for top executives, including CEO Richard Miller, CFO Douglas McKinnon, President Taftflitner and deputy executives of Deborah McDaniel Hand. All four agreed not to resign or request exit payment to provide the pipe.
They also agreed that the bonus is based solely on Tron’s legacy business, especially consumer products, rather than on Crypto operations. McKinnon resigned from the board of directors but remained as CFO. “There’s no conflict. My focus is operational stability,” Mackinnon said. I said With 8-K filing.
Similar products had been closed just a few weeks ago. On May 21, Tron sold 5,000 Series A preferred stock to another investor for $5 million. These shares can be converted to 8.9 million shares for $0.56, and may expire for two years and have a $8.9 million warrant of $0.65.
Series A Warrants include a 4.99% or 9.99% ownership cap, depending on the owner’s election. On May 22nd, Tron submitted the required certificate of designation and revised the conversion price the next day.
Dominari Securities served as placement agent for both the May and June offerings. They were paid $100,000 in fees, receiving 535,714 placement agent warrants for the May transaction, and an additional $50,000 in the June round.
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