Overstock Closes Transaction with Pelion Venture Partners to Oversee Medici Ventures’ Blockchain Assets
April 26 2021 - 08:05AM
Overstock.com, Inc. (NASDAQ:OSTK), today announces it has closed
its blockchain fund transaction with Pelion Venture Partners, a
third-party venture capital firm with a proven track record of
successfully investing in early stage companies. Overstock’s wholly
owned blockchain-focused subsidiary, Medici Ventures, has been
converted into a limited partnership (the “Fund”) and will be
managed by Pelion MV GP, LLC, which will act as the general partner
of the Fund. Overstock.com, Inc. is the sole limited partner of the
Fund.
As the limited partner, Overstock has committed $45 million over
the eight-year life of the Fund. The Fund will return invested
capital to Overstock first and then split profits on successful
exits as set forth in the Fund’s Limited Partnership Agreement. The
Fund will hold a significant minority ownership stake in tZERO
Group, Inc. (“tZERO”) and Overstock will retain a direct minority
equity interest in tZERO.
“We remain bullish on blockchain technology and are excited for
Medici Ventures to enter this new post-closing phase,” said
Overstock chief executive officer Jonathan Johnson. “Pelion has
spent the last three months getting to know these portfolio
companies better. I expect Pelion, which will oversee the portfolio
and make follow-on investment decisions, will take these companies
to the next level and help guide them to economic success. I’m
pleased we closed this transaction ahead of schedule. Overstock can
now focus on our core e-commerce business, which continues to
realize tremendous revenue, profit, and market share growth.”
Pelion MV GP, LLC now has sole authority and responsibility
regarding the Fund’s investment decisions and in exercising all
shareholder rights Medici Ventures holds in the portfolio
companies.
“I am pleased this transaction with Overstock came together and
has now closed,” said Pelion Venture Partners founder and managing
director Blake Modersitzki. “Pelion recognizes the value in these
disruptive companies and the world-changing potential of blockchain
technology. We look forward to jumping in immediately and working
with each of the portfolio companies to maximize the value of these
assets.”
About OverstockOverstock.com, Inc Common
Stock (NASDAQ:OSTK) / Series A-1 Preferred Stock (tZERO ATS:OSTKO)
/ Series B Preferred Stock (OTCQX:OSTBP) is an online retailer
and technology company based in Salt Lake City, Utah. Its
leading e-commerce website sells a broad range of new home products
at low prices, including furniture, décor, rugs, bedding, home
improvement, and more. The online shopping site, which is visited
by tens of millions of customers a month, also features a
marketplace providing customers access to millions of products from
third-party sellers. Overstock was the first major retailer to
accept cryptocurrency in 2014, and in the same year
founded Medici Ventures, its wholly owned subsidiary dedicated
to the development and acceleration of blockchain technologies to
democratize capital, eliminate middlemen, and re-humanize commerce.
Overstock regularly posts information about the Company and other
related matters on the Newsroom and Investor
Relations pages on its website, Overstock.com.
O, Overstock.com, O.com, Club O, and Worldstock are registered
trademarks of Overstock.com, Inc. Other service marks, trademarks
and trade names which may be referred to herein are the property of
their respective owners.
About Medici VenturesLaunched in 2014, Medici
Ventures was a wholly owned subsidiary of Overstock.com, Inc.
created to leverage blockchain technology to solve real-world
problems with transparent, efficient, and secure solutions. It is
now a limited partnership managed by Pelion MV GP, L.L.C.
Overstock.com, Inc. is the sole limited partner. Medici Ventures’
companies are introducing blockchain technology to industries
including identity, land governance, money and banking, capital
markets, supply chain, and voting.
About Pelion Venture PartnersPelion is an early
stage technology venture capital firm with a national track record
of investing in software-based businesses that manage the
exponential growth in the movement of information, or “bits,”
across wired and wireless networks. Founded in 1986, Pelion has
been a partner to leading technology innovators CloudFlare,
Fusion-io, MX Logic, RedHat, and Riverbed. More at
www.pelionvp.com.
Cautionary Note Regarding Forward-Looking
StatementsThis press release contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Such forward-looking statements include all statements
other than statements of historical fact, including but not limited
to statements regarding expectations with respect to the
performance of Pelion and the Fund. Additional information
regarding factors that could materially affect results and the
accuracy of the forward-looking statements contained herein may be
found in the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2020, which was filed with the SEC on
February 26, 2021, and in our subsequent filings with the SEC.
Contacts Investor
Relations: Alexis
Callahan 801-947-5126 ir@overstock.com |
Media: Megan
Herrick 801-947-3564 pr@overstock.com |
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