Monster Products Files for $300 Million Initial Cryptocurrency Offering
May 25 2018 - 8:15PM
Dow Jones News
By Aisha Al-Muslim
Monster Products Inc. has filed for an initial offering of up to
$300 million of its cryptocurrency Monster Money Tokens as the
sound technology company focuses away from only building its
product range to pursuing innovations.
The South San Francisco-based company will issue the initial
public coin offering price at a price of $1 per token, according to
documents filed Friday with the Securities and Exchange Commission.
The company said it plans to apply to have the MMNY Tokens traded
on an exchange for cryptocurrencies.
With roots tracing back to 1978, Monster offers consumer
products, such as cables, headphones, speakers and mobile-phone
accessories.
The company plans to integrate the blockchain technology to its
e-commerce website to create the Monster Money Network, where
consumers may use either MMNY Tokens or fiat currencies to make
purchases online of Monster products and services.
The company intends to develop Monster Money Network in three
stages. The first stage is to provide basic transactional
functions, such as Monster Money Wallets and processing
transactions in MMNY tokens. The second stage is to establish a
private off-chain platform where micro-transactions can be
completed. The third is to complete Monster's blockchain and
integrate such blockchain to the operating systems of the
company.
"As we develop Monster Money Network and our backend systems, we
intend to utilize the blockchain technology to our marketing,
accounting and audit, internal control and shipping management
functions," the company said in the filing.
Monster plans to use the net proceeds from the sale of the
tokens for business development and working capital purposes,
including to investment in the research and development of Monster
Money Network, sales and marketing activities, forming
partnerships, and general capital purposes. It may also use a
portion of the proceeds for acquisitions or investments in
technologies, solutions or businesses that complement its
business.
Principal shareholders are the company's Chief Executive Noel
Lee and Chief Operating Officer Fereidoun Khalilian.
Monster had a net loss of $29 million in 2016 and a net loss of
$26.7 million in 2017. In the first quarter, ended March 31, 2018,
the company had a net loss of about $19.6 million. Total net sales
decreased 34.4% to $30.9 million in 2017 compared with 2016.
That is significantly down from 2012, when Monster said it
achieved sales of more than $1 billion in revenues primarily driven
by Beats headphones. But then in 2012, the relationship with Beats
headphones was terminated, which "dramatically interrupted
Monster's product lines and strategies," the company said in the
filing.
After the relationship ended with Beats, Monster has expanded
its product mix to include several headphone lines, a
High-Definition Multimedia Interface ("HDMI") cable and a home
audio service line named "SoundStage," the company said.
Apple Inc. acquired Beats Electronics LLC, the manufacturer of
Beats by Dre headphones, for $3 billion in 2014.
Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com
(END) Dow Jones Newswires
May 25, 2018 20:00 ET (00:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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