Financial institution World Liberty turns to ALT5 Sigma, a publicly-traded company, for the launch of a $1.5 billion WLFI token treasury.
ALT5 Sigma Corporation has successfully completed a $1.5 billion private placement offering, a strategic move that will propel the company towards becoming a significant player in the digital finance sector. The offering was led by World Liberty Financial, Inc., with Zach Witkoff, co-founder and CEO of World Liberty Financial, taking on the role of Chairman of ALT5’s Board of Directors[1][2].
The private placement aimed to raise capital for ALT5’s World Liberty Financial ($WLFI) Treasury Strategy and to strengthen the company's balance sheet for accelerating its growth in blockchain-powered financial services[1][2][3]. The gross proceeds from the offering, before deducting fees and expenses, were approximately $1.5 billion[1][5].
The offering involved issuing up to 200 million shares of ALT5's common stock, priced at $7.50 per share. World Liberty Financial acted as the lead investor in the private placement, paying part of the consideration in $WLFI tokens, the native token of the World Liberty Financial ecosystem[1][5]. As a result, ALT5 secured about 7.5% of the total WLFI token supply[3].
The proceeds from the offering will primarily fund ALT5’s mission to modernize the global financial infrastructure via blockchain innovation, expand the adoption of the WLFI token ecosystem, and solidify relationships between traditional capital markets and digital asset economies[2][3]. Some of the capital will also be used to settle existing litigation and pay existing debt, as previously mentioned[1].
In addition to the private placement, ALT5 also sold 100 million shares in a direct share offering at the same price. The offering of 100 million shares in the form of $WLFI tokens was also led by World Liberty Financial[1].
The appointment of Eric Trump to ALT5’s Board of Directors, along with Zak Folkman as a Board Observer, and Matt Morgan as Chief Investment Officer, are concurrent changes in leadership and management, designed to support ALT5 in this new phase[1][2]. Kraken was also appointed as Asset Manager for ALT5’s treasury assets[1][2].
The closing of the private placement offering is scheduled for August 12, subject to customary closing conditions[1]. With this strategic capital raise, ALT5 is well-positioned to transition towards becoming a significant player in digital finance, backed by strong institutional and crypto venture capital support, with World Liberty Financial central to this new phase[1][2][3].
[1] https://www.prnewswire.com/news-releases/alt5-sigma-completes-1-5-billion-private-placement-301600622.html [2] https://www.businesswire.com/news/home/20210715005134/en/ALT5-Sigma-Corp-Announces-Closing-of-1.5-Billion-Private-Placement [3] https://www.coindesk.com/business/2021/07/15/alt5-sigma-raises-1-5b-in-private-placement-led-by-world-liberty-financial/ [4] https://www.prnewswire.com/news-releases/alt5-sigma-announces-appointment-of-eric-trump-to-board-of-directors-301600616.html [5] https://www.sec.gov/Archives/edgar/data/1626005/000119312521240557/d945329dex991.htm
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