Coinflex plans give 65% of company to creditors as part of proposed restructuring

Subject to a vote and court approval, the plan offered to CoinFlex creditors owns 65% of the company, while that his team members are allocated 15% of the company's shares.
New
Cryptocurrency exchange CoinFlex has announced a proposed structuring in response to user feedback following the platform experiencing liquidity issues.

In a blog post on Wednesday, CoinFlex said that under the proposal – which will be put to a vote and then approved by the court – creditors will own 65% of the company, while members of its team will be awarded 15% of the shares under an employee stock option plan. According to the platform, Series B investors would remain shareholders of the restructured company if the plan is approved.

“As with any reorganization, unfortunately most shareholders are eliminated,” said Mark Lamb, CEO of CoinFlex, and Sudhu Arumugam, Chief Revenue Officer. “This situation is no different; with all of the company's existing common and Series A shareholders losing their stakes, including us. »

The platform added that it will offer creditors its rvUSD recovery token, stocks and USD (USDC) coins instead of its FLEX coins. The SmartBCH Alliance would also assume responsibility for the SmartBCH bridge under the proposal, using its Bitcoin Cash (BCH) to "exchange sBCH tokens held by DeFi SmartBCH users on a 1:1 basis".

“The SmartBCH Alliance will take over as creditor of [CoinFlex] for the amount of BCH it spends in performing these obligations. The Alliance will be treated like any other creditor without change in the position of any of the other present creditors."

CoinFlex plans to hold a community vote on the proposed restructuring on September 25, with 75% of creditors voting as enough to pass. The company will then forward the plan along with the vote count to the Seychelles courts for final approval.

“If everything is in order, we expect this process to take up to six weeks; however, this is only an estimate,” Lamb and Arumugam said.

Crypto Sep 22, 2022 0 78 Add to Reading List

Coinflex plans give 65% of company to creditors as part of proposed restructuring

Subject to a vote and court approval, the plan offered to CoinFlex creditors owns 65% of the company, while that his team members are allocated 15% of the company's shares.

Coinflex plans give 65% of company to creditors as part of restructuring proposal

New

Cryptocurrency exchange CoinFlex has announced a proposed structuring in response to user feedback following the platform experiencing liquidity issues.

In a blog post on Wednesday, CoinFlex said that under the proposal – which will be put to a vote and then approved by the court – creditors will own 65% of the company, while members of its team will be awarded 15% of the shares under an employee stock option plan. According to the platform, Series B investors would remain shareholders of the restructured company if the plan is approved.

“As with any reorganization, unfortunately most shareholders are eliminated,” said Mark Lamb, CEO of CoinFlex, and Sudhu Arumugam, Chief Revenue Officer. “This situation is no different; with all of the company's existing common and Series A shareholders losing their stakes, including us. »

The platform added that it will offer creditors its rvUSD recovery token, stocks and USD (USDC) coins instead of its FLEX coins. The SmartBCH Alliance would also assume responsibility for the SmartBCH bridge under the proposal, using its Bitcoin Cash (BCH) to "exchange sBCH tokens held by DeFi SmartBCH users on a 1:1 basis".

“The SmartBCH Alliance will take over as creditor of [CoinFlex] for the amount of BCH it spends in performing these obligations. The Alliance will be treated like any other creditor without change in the position of any of the other present creditors."

CoinFlex plans to hold a community vote on the proposed restructuring on September 25, with 75% of creditors voting as enough to pass. The company will then forward the plan along with the vote count to the Seychelles courts for final approval.

“If everything is in order, we expect this process to take up to six weeks; however, this is only an estimate,” Lamb and Arumugam said.