Crypto startup cancels plans for co-working space geared at cannabis-related businesses

Cryptocurrency project ParagonCoin has abandoned its idea for a co-working space for cannabis-related businesses and is selling the property for $4,200,000, according to ParagonCoin’s SEC filing. The company planned for its token to be used by cannabis-firms renting out its office spaces. Now, the property consisting of three detached buildings and a garage is for sale, having bought the property for $3,750,000 with a $2,450,000 loan. As of May 1, 2018, ParagonCoin paid $4,015,624.76 for it.

In the filing, ParagonCoin writes, “We currently do not intend to renovate, improve, or develop other properties. We currently do not intend to make further investments in real estate or acquire any interests in real estate and do not intend to make investments in real estate mortgages.  Further, we do not intend to make investments in securities of or interests in persons primarily engaged in real estate activities.” The company added that it had “determined not to pursue this aspect of our initial business plan at this time.”

Paragon is now planning to focus on developing a blockchain track-and-trace computer software for cannabis businesses and is going to use the tokens there.

The company was required to report to the U.S. Securities and Exchange Commission periodically for a year after selling tokens in an initial coin offering that should have been registered as securities; it also had to pay a $250,000 penalties, reimburse investors for the tokens, and register the token as a security.