Intex Resources ASA to be renamed Element ASA signs Terms of Agreement with Harmonychain to explore initiation of an Initial Coin Offering of asset-backed digital tokens based on blockchain technology.
The Company and Harmonychain intends to issue asset-backed tokens which are backed by the Company’s metal reserves; currently Iron Ore and Nickel Ore, and products derived thereof (‘Tokens’). The Tokens will be based on blockchain technology and will be exchangeable in to the physical product (i.e. Iron Ore, Nickel or products derived thereof). The Tokens may accordingly be used as an alternative tool for investors who are looking for Iron Ore- or Nickel exposure/hedging or investors who simply want exposure in digital Tokens which have the security of underlying value assets (as opposed to Bitcoin and other un-backed crypto currencies).
“The new world of serious and secure digital currencies and tokens opens up a whole new way for listed companies to raise capital. We believe our ICO would be the first of many to come from other companies in Norway and internationally”, says Lars Beitnes, Chairman of the Company.
“For the Company the most obvious potential of issuing Tokens is the possibility of bridging the gap between current reserve-value and equity value, in addition to providing a possibility for non-dilutive financing for our shareholders”, says Beitnes.
On the condition of a successful ICO by 30 June 2018, the TOA stipulates that the Company will have exclusive rights to use Harmonychains Ethereum Smart Contract platform technology and some or all of their pending patent claims to develop Tokens for Iron Ore and Nickel. The company has already registered IRON and NICKEL on the EC20 blockchain and is aiming to distribute the tokens on reputable token exhanges.
For more, read the entire press release here.