Overstock, an online retailer, has converted its Digital Voting Series A-1 and Voting Series B preferred stock, which are security tokens, into shares of its common stock.
The company announced that Series A-1 and Series B shares were no longer trading at the close of market on June 10. Investors who owned preferred shares will receive common shares in their brokerage accounts once their broker-dealers have updated their records with Depository Trust & Clearing Organization.
This is the result of a May 12 shareholder voting in favor of the conversion.
Jonathan Johnson, Overstock CEO, stated that the conversion simplified our equity capital structure and moved to one stock class from three. This is exactly what our investors wanted.
The Series A-1 shares were traded via the PRO Securities alternative trading platform, which is a registered platform that Overstock’s blockchain arm, tZERO, operates. The venture was subject to scrutiny by the Securities and Exchange Commission (SEC), who served Overstock with two or more subpoenas regarding tZERO and the security-token offering. The SEC claimed that the platform had made several errors in filing disclosures and issued a fine.
