French biotechnological company HCS Pharma announced today that it is set to raise $7.3 million through a security token offering (STO).
HCS Pharma to Raise $7.3M Via STO
“We opted for going through a pre-IPO STO because it is the easiest way to have control of our company,” she said.
In an effort to achieve the $7.3 million target, Maubon said that the company has partnered with two unnamed France-based marketing firms that specialize in cryptocurrencies.
The HCS Pharma founder also noted that companies in the medical field that are interested in joining the crypto bandwagon through tokenized securities first need to educate investors on the process involved in participating in STOs and initial coin offerings (ICOs).
“We have to be clear that these investors are investing into a ‘real’ biotech company, rather than a virtual product,” she said, adding that provisions will be made for investors who have no prior knowledge of cryptocurrencies.
She also revealed that the company expects to be listed before the year runs out.
Implementation of STO Not New
Meanwhile, HCS Pharma is not the first mainstream company to adopt STO for its public offering. In July 2019, investment manager Da Vinci Capital conducted a pre-sale of tokenized shares as part of its offerings.
In October 2019, Coinfomania reported that six major brokerage companies in Japan joined forces to promote the development of STOs as a fund-raising model in the country. The companies established a group dubbed the Japan Security Token Offering Association, which is aimed at developing self-regulation concerning STOs as a form of digital funding.
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