The Praetorian Group has filed with the Securities and Exchange Commission an application for approval of their $75 million token sale.
The group, co-founded by two attorneys with experience in banking and real estate, plans to use the funds towards securing New York properties.
“The Praetorian Group’s vision is to invest in lower income areas that are set to increase in value, infuse cryptocurrency into these areas and to fund “Outreach Programs” to enrich the quality of life for the residents in Praetorian Group owned properties,” they say in their prospectus paper.
They further plan to issue a PAX debit card, with the company stating the token could be used as a real estate backed currency. They further say:
“PAX Token holders, as a result of their investment, hold the right to the net profit of the real property rent accumulation based on their overall percentage of holdings relative to the overall total float of PAX token.
Holding PAX token does not provide and should not be interpreted as holding equity in the Praetorian Group.”
The filing however suggests token holder rights might be a bit broader, entitling them to all company profits, they say:
“On an Annual basis, all Company PAX Token Holders shall be entitled to their share of our net profit, (revenue minus expenses off the real estate holdings) that the Company will distribute, in its sole and absolute discretion. This will be paid in PAX tokens purchased on the secondary exchange when the Company achieves profitability.”
The filing further says this could be an Ethereum or a NEO token, with the company seemingly not having yet made a decision.
They plan to hold a pre-sale pending SEC approval, with the question as to whether SEC will grant it remaining very much in the air.
The Securities and Exchanges Commission (SEC) has been pretty hostile towards this space so far, denying financial products and interpreting effectively all ICOs as being securities, an interpretation which has not been challenged in court.
We’ll therefore have to wait and see how they approach PAX and, more importantly, we’ll have to wait and see whether they once again take some four years to make a decision like they did with the bitcoin ETF, which they then rejected.