Blockchain firm Blackstar Enterprise Group Inc. (OTCQB:BEGI) has launched a $1.58 million stock offering, according to a registration statement filed Monday with the U.S. Securities and Exchange Commission.
Blackstar will raise the funds by selling 46 million common shares at a price of 3 cents per share.
Blackstar is developing the Blackstar Digital Trading Platform, a blockchain-based peer-to-peer digital stock trading platform. The platform is intended to be licensed to public companies whose shares are traded over-the-counter.
Companies that license the platform would have a customizable interface allowing them to issue securities and facilitate public and private offerings. All transactions, customer data, and corporate governance information would be recorded immutably on an Amazon Web Services-based blockchain. The Securities and Exchange Commission and the Financial Industry Regulatory Authority would have full access to all information stored on the blockchain. According to its website, Blackstar hopes this increased transparency will mitigate many of the risks associated with investing in OTC stocks and restore investor confidence in trading OTC company stocks.
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