tZERO Group, Inc., a blockchain-powered multi-asset infrastructure company, announced today that the required majority of holders of its Preferred Equity Tokens, Series A (TZROP), have approved a conversion proposal. The conversion will exchange each TZROP share for three shares of tZERO Series B preferred stock and eight shares of tZERO common stock. The vote saw 1,594 holders voting 15,164,076 shares, representing 72.2% of outstanding TZROP shares. Of those voted, 84.6% were in favor, and 89.3% of participating holders supported the proposal.
The approval addresses structural complexities in tZERO's capital structure and aligns the company with its investors, including early TZROP supporters who will now own approximately one-third of each of tZERO's Class B shares, common stock, and fully diluted shares. CEO Alan Konevsky expressed gratitude for the investor community's support, calling the vote an important step forward as the company executes its strategy to commercialize independent, integrated, regulated infrastructure for tokenized assets.
Following completion of the conversion process, tZERO's largest shareholder, Bed, Bath & Beyond, Inc., has indicated its intention to lead up to $10 million in additional capital through a proposed convertible note financing. Eligible existing tZERO investors and other qualified parties may participate on similar terms by contacting tZERO at ir@tzero.com. The company will provide updates as the conversion steps are consummated in the coming days.
About tZERO: tZERO Group, Inc. and its broker-dealer subsidiaries provide a liquidity platform for private companies and assets, offering institutional-grade solutions for issuers to digitize capital tables via blockchain technology. All technology services are offered through tZERO Technologies, LLC. For more information, visit their website.
Forward-Looking Statements: This release contains forward-looking statements subject to risks and uncertainties, including the ability to keep pace with technology and changing market needs, regulatory developments, and competition. Actual results may differ materially from those projected. tZERO is not obligated to update any forward-looking statement.
