Teraoil Swiss AG (TOS), the upstream oil and gas company based in Switzerland and operating in Albania, has contracted CM-Equity AG (CM), a leading financial service provider for digital assets and financings and is to prepare a public prospectus for the issuance of a double digit million Euro financing via a tokenized convertible bond. The security tokens, which are intended to be offered in multiple European countries are issued and managed by a smart contract that is programmed on the blockchain.
We are happy to announce that CM-Equity was chosen to support Terraoil Swiss AG as global coordinator for its digital asset financing
Crypto assets – also called digital assets – are both cryptocurrencies (e.g. Bitcoin) and security token that represent a financial instrument used for public financings. Digital assets have gained wide attention in recent years and now regulatory frameworks exist that not only underline the growing importance of the space but enable a fast-paced adoption in traditional financial markets.
With regard to the Swiss market – the FINMA has granted two banks a full banking license, which accept cryptocurrencies as payment and also support cryptocurrency transactions. TOS has opened a corporate account with one of these banks, to execute on the innovative opportunities of the digital capital markets.
The tokenization or securitization of common financial instruments such as stocks, bonds, options, etc. on the blockchain offers a multitude of additional opportunities compared to cryptocurrencies per se. In this respect, the current status in terms of national regulation is different in many countries, however, fully harmonized within the European Economic Area (EEA) and Switzerland as an exemption.
In Germany, the regulator BaFin allows the tokenization of bonds, including convertible bonds, provided a full prospectus is submitted to and approved by the regulator. Then, the prospectus can be passported to 27 countries within the EEA in a standardized manner and enables a possible European-wide public offering.
TOS decided to become a first mover in using digital assets as an innovative way for financing its development and expansion plans. As a Swiss corporation, the firm expects to use the German regulatory framework to launch a tokenized convertible bond in 2020.
Terraoil is a uniquely positioned onshore Albanian oil producer that has been operating in the country since 2012.
Terraoil’s strategy is focused on becoming a leading oil producer in Albania while providing significant returns for shareholders.
Terraoil Swiss AG
Telefon: +41 71 544 01 20
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CM-Equity AG is an independent and owner-managed financial services institution based in Munich. Founded in 2002, the company offers its customers tailor-made financial services in the areas of Digital Assets & Financing, Direct-Placements, Secondary Market and Alternative Investment Fonds.
The Asset Management division specialises in active portfolio management strategies as well as in providing asset management services to institutional clients and high net worth individuals with crypto-currencies. Customer proximity, transparency and sustainability are at the heart of the corporate philosophy.
Telefon: +49 – (0)89 – 1890474 – 11