Blockchain startup Modum wanted to convince its owners to convert token into equities. They refused.
The announcement came at short notice: owners of asset tokens issued by Modum were supposed to vote about a conversion of the coins into stocks tomorrow Wednesday. The board however, led by Chairman Marc Degen, has cancelled the vote, according to a statement released by Modum on Tuesday.
«After having carefully considered the various feedbacks from the community, the Modum board of directors has decided to cancel the vote on the token-equity swap,» said the company. «The united board of directors did not want to rush the decision as this vote is crucial for the future success of Modum.»
Transparency Required
Degen earlier this month had told finews.com that the company originally wanted to issue tokenized equities in 2017 already, but that this had not been possible. With an eye on future financing rounds, the company now wants to avoid any discount on its valuation. It hopes to raise an amount in the double-digit million bracket.
The owners of the tokens however seem to have little interest in becoming shareholders of a company that doesn’t publish an annual report and whose ownership is less than transparent. Modum therefore faces the challenge of having to find a new way to generate capital to grow its business.
