At a time when disappointment weighs heavily on the ICO market, projects that offer secure and lucrative investment opportunities are a true rarity. BatteryStorage aims to provide just such an opportunity to institutional, accredited and retail investors. In its first public announcement, the company has outlined its plan to launch a security token offering (STO), fully compliant with the laws and regulations governing securities in Malta and the EU.
The security token offering that really is for everyone
Under BatteryStorage’s STO plan, the minimum capital required (soft cap) is EUR 13.5 million, while the company’s maximum goal for capital raised (hard cap) is set at EUR 72 million. The funds raised will be used to finance a 60 MW Li-ion energy storage solution in Glasgow, UK as well as licensing, cryptocurrency mining equipment, and other related capital expenditures and operating expenses. At present, BatteryStorage is raising capital via the private BSO security token pre-sale.
Welcoming the upcoming launch, Robert Miles, joint CEO of BatteryStorage, explains that now is the perfect time to move from an unregulated ICO to a regulatory-compliant STO capital raising model:
“It’s easy to understand the sentiment that ICOs failed to provide the expected benefits for retail investors – especially those who decided to hold on to their utility tokens, waiting for their value to go up again. The unregulated market caused an influx of de facto securities which were presented as utility tokens but which had only speculative value. Most of these ICO projects failed to deliver their promised products, even at a very basic level. Now, however, we’re seeing a huge demand for crypto-related projects, fully compatible with securities laws and regulations”.
The BatteryStorage STO is expected to begin in Q1-Q2 2019, after the company has successfully undertaken all necessary legal procedures to become a public company in Malta, and received approval from the Maltese Financial Conduct Authority for its prospectus regarding the BSO token offering and sale. The legal process of BSO token offering and preparation of prospectus is being handled by Chetcuti Cauchi Advocates, a top-tier Malta law firm specialising in initial public offerings, sales of securities and issuance of stock.
BatteryStorage (BSO) token holders will receive passive income in the form of a 60% share of BatteryStorage profits derived from renewable energy storage, cryptocurrency mining and GPU-accelerated data centre operations in the UK. A minimum investment of EUR 300 will be required to participate in the BatteryStorage token offering after it is approved by the MFSA and officially announced.
Energy storage with a twist
With the rapidly expanding wind and solar energy market delivering an excess of electrical energy at off-peak times and a deficit at peak periods, battery storage technology has reached its break-even point in terms of cost-efficiency. Now is the right time for BatteryStorage to launch its innovative industrial-scale renewable energy storage solution, and the UK provides a favourable legal and regulatory environment to do so.
“The usual business model for energy storage revolves around buying renewable energy when the price is low, storing it, and selling at peak demand for a greater price,” explains Robert Miles. “BatteryStorage’s business model provides an important twist: while we possess the ability to simply sell it, we will use part of the cheap renewable energy stored by our facility for cryptocurrency mining and operating a GPU-accelerated data centre. Applied correctly, using the energy in this way could increase business profitability severalfold.”
BatteryStorage will deliver profit sharing for BSO token owners, and an uninterrupted supply of renewable energy to consumers at affordable and steady prices. In addition, it will reduce dependence on carbon dioxide-intensive power generation from fossil fuels, and provide the infrastructure necessary to promote the further growth of wind and solar power generation.
Battery Storage Ltd., a company established and operating under the laws of Malta, legal entity code C 88899, office registered at 60/2 Melita St., Valletta VLT1122, Malta (which before BSO token public offering and sale will be converted into a public company), an energy storage company, began its business operations in the UK in January 2017.
The BatteryStorage team brings together the expertise of leading industry experts including Robert Miles, former head of commerce at British Gas; Arvydas Kazlauskas, co-founder of Akv Energy; Steven Bradley, co-founder of Vox Energy and Edison Energy; and Jing Bai, investment director at Immersa.
The company has already secured partnerships with industry-leading companies including Centrica, Restore, Sureserve/Everwarm, REstore and others, with a combined net worth of over EUR 13.5 billion.