Overstock to Issue Dividend of One Digital Share for Every Ten Shares

By Prashant Jha

Overstock, a major retail company based in the United States, has recently stated in a press release that will be paying out dividends in the form of shares. These shares will be of its Digital Voting Series A-1 Preferred Stock, which can be traded on the PRO Securities alternative trading system (ATS). The digital dividend from Overstock will be paid out to the recipients at a ratio of 1:10. This essentially means that for every ten shares of common stock, Overstock will be issuing a Series A-1 share with the beneficiary.

As the announcement details, the Series A-1 Shares are such that they can be traded on the PRO Securities ATS. The ATS itself will be taken care of by tZero, which is a crypto company that is a subsidiary of Overstock itself.

Investors can trade on the alternative trading system only if they have a brokerage account held with the Dinosaur Financial Group. The custody and clearing services are to be provided by Electronic Transaction Clearing, a broker-dealer with appropriate registration. The transfer agency will be looked into by the firm Computershare.

As the report details, the record and distribution of these dividends are to take place in the fall of this present year. The PRO Securities ATS is the very platform which had been used to resell tZero’s security tokens to accredited investors some months ago this year. The record date for the dividends has been set for 23rd September, 2019. The distribution date for the same has been decided to be 15th November, 2019, as per the announcement made by Overstock.

Patrick Byrne, the Chief Executive Officer of the company has stated with respect to this development that the company has successfully fulfilled its aim of creating what he calls a “parallel universe” that has a legally regulated and accepted capital market based in wondrous technology of blockchain.

In recent days, Overstock has also been in the news because its crypto subsidiary tZero released the Android edition of its crypto mobile app, that supports both Bitcoin, and Ethereum, the two top cryptos of the market.