Security Token Offering 2020/21
Security Token Offering
The Business Plan describes how Pacio is projecting a net profit of US$10.8 billion by 2027 and a valuation of US$216 billion based on a PE ratio of 20.
Investor Returns
A valuation of $216 billion provides capital gains for STO investors of 431,900% as shown in the table below.
The planned 10% dividend of $1 billion in 2027 gives dividend returns to STO investors of 2,000% per annum.
The returns are so high because of the high profit potential of Pacio’s business model and the gearing provided by the planned use of debt financing after the STO.
STO Details
$1.4 million in seed funding for Pacio was raised via a seed token sale in 2017/2018 subsequently converted to convertible notes (CNs) in the STO, plus private placements for CNs in 2019 and 2020.
Pacio’s authorised capital is US$50 million made up of one class of ordinary shares divided into 50 million shares with one vote for each share. The PIO token is an equity token or digital share certificate for ownership of one share in Pacio. Each share or PIO has full and equal rights i.e. dividends, capital gains, and voting.
The Pacio Core Ltd Memorandum and Articles of Association were amended in November 2020 to increase the authorised capital and to provide for tokenised digital share certificates in preparation for the STO.
STO Numbers
- STO Platform
- DigiShares Interface
- Token Custody
The STO platform chosen is Polymath using their current Ethereum based offering.
(Polymath is developing their own Polymesh blockchain, but their Ethereum offering is the one that is live now. An upgrade to Polymesh could follow when Polymath is ready.)
The Pacio PIO Contract on Ethereum went live on 30 November 2020. 50 million PIOs were minted.
The Ethereum contracts manage the PIOs, but they do not handle things like KYC/AML checks for new investors, nor the paying of dividends, nor CAP Table handling, nor trading, nor the re-issuing of tokens for which access has been lost.
DigiShares Platform
For KYC/AML, dividends, CAP Table and trading we purchased a member front-end from DigiShares that is white-labelled as a Pacio system.
This gives us:
- Dashboard for investors
- Dashboard for the company
- Investor registration and verification (KYC/AML)
- Token purchases (for people investing in the STO)
- Internal exchange i.e. OTC trading. Listing of PIOs on other exchanges is a separate and different matter, but this gives us OTC trading out of the gate.
- Voting
- Dividend processing
- Freezing/replacement of tokens for stolen tokens or those to which access has been lost
- Token shareholder register for company use i.e. not public
Here is view of the Investor Dashboard (before loading of shares):
Pacio will keep custody of all tokens on behalf of investors via the DigiShares system, though STO investors can transfer their tokens to their own wallets, if they prefer that and wish to take custody responsibility themselves. Transfer to a wallet is not necessary for trading on the internal exchange but is required for trading on external exchanges such as Uniswap.
STO investors will be able to invest in two ways:
- Directly using digital currencies: BTC, ETH, or stablecoins
- By sending FIAT currency (USD, GBP, or EUR) to a Pacio bank account for Pacio to issue the PIOs on behalf of the investor
How To Invest
Pacio Core Ltd
Hewanorra House, Pointe Seraphine, Castries, Saint Lucia, LC04 301