Overstock.com wraps digital series A, series B preferreds rights offer

By Marisa Wong

Morgantown, W.Va., Dec. 15 – Overstock.com, Inc. closed its rights offering of preferred stock on Thursday, issuing a total of 695,898 shares of the preferred stock, according to an 8-K filing with the Securities and Exchange Commission.

The company issued 126,565 shares of series A preferreds and 569,333 shares of series B preferreds to rights holders who had exercised their subscription rights by Dec. 6.

The company set the final subscription price at the maximum subscription price of $15.68 per share.

The subscription price was to be 95% of the volume-weighted average trading price of the common stock for the five days ending on and including Dec. 6. The volume-weighted trading price for that period was $16.97, 95% of which is $16.12, as previously reported.

As a result, rights holders who exercised rights in the offering acquired their shares for $15.68 per share, which is about a 9.4% discount to the closing price of the common stock on Dec. 6 of $17.30.

The series A preferreds are digital securities that will trade exclusively on a registered alternative trading system operated by the company’s majority owned subsidiary, PRO Securities, LLC, using software technology known as the t0 issuance and trading platform. Keystone Capital Corp. is the broker-dealer authorized to give investors access to the series A preferreds.

The series B preferreds are non-digital securities that will trade over-the-counter and are expected to be quoted on the OTCQB market, the filing noted.

“Issuing history’s first public blockchain security is to the world of finance what Chuck Yeager breaking the sound barrier was to aviation. This is the start of a new age for global capital markets,” Patrick M. Byrne, Overstock chief executive officer, commented in a Nov. 15 press release.

Overstock.com is an online shopping retailer based in Salt Lake City, Utah.

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