Overstock converts preferred stock token to common stock
Online retailer Overstock has converted its Digital Voting Series A-1 Preferred Stock, a security token, and its Voting Series B Preferred Stock into shares of the company's common stock.
The firm announced that the Series A-1 and Series B shares stopped trading at market close on June 10. Investors who held the preferred shares will see common shares in their brokerage accounts when their broker-dealers update their records with the Depository Trust & Clearing Organization to distribute the new shares.
The move reflects the outcome of a May 12 shareholder vote approving the conversion.
“This conversion simplifies our equity capital structure by moving to a single class of stock from three classes, and is what our investors wanted," said Overstock CEO Jonathan Johnson in a statement.
The Series A-1 shares were traded on the PRO Securities alternative trading service, a registered platform operated by a subsidiary of Overstock's blockchain arm, tZERO. In 2019, the venture drew scrutiny from the Securities and Exchange Commission (SEC), which served Overstock two or more subpoenas on tZERO and the security token offering. That ultimately led to a fine for tZERO in January of this year, when the SEC alleged the platform made a number of errors in its filing of disclosures.
