Preliminary update on IRON Token structure

17.03.18 | Press releases

Element ASA ('Element' or the 'Company') has following in-depth evaluations together with its advisors decided to structure its IRON Token Project independent of its interests in Ambershaw Metallics Inc (‘Ambershaw’ or `AMI`).

Element is of the opinion that the updated structure has the potential to form the basis for the Company to become a key issuer of Tokens in the Iron-ore industry, potentially supported by several Iron-ore producers around the world. Pending certain clarifications, market conditions and regulatory development, it is Elements view that the platform provides possibilities for  scalability into other related commodities and products in the future. Element may use the funds raised to acquire new Iron-ore assets or invest in AMI, however always ensuring to keep sufficient funds to deliver Iron-ore to Token holders who are entitled to delivery.

The Company provides the following high-level update on the IRON Token structure:

The IRON Tokens will be issued by a new issuing subsidiary called Element IRON. Element will be the manager of Element IRON. The IRON Tokens will be established as digital token on the Ethereum platform, eligible for use to acquire goods or services from market participants who wish to use the IRON Tokens as means of payment. Token holders owning a defined minimum quantity of IRON Tokens may request delivery of Iron-ore through an exchange of IRON Tokens for Iron-ore on the further conditions set in the Whitepaper, due to be published. 

The Company is currently finalising the details of the structure and the Whitepaper with its underlying documentation together with its advisors, considering all relevant regulatory issues in order to ensure that the structure of the IRON Tokens is in compliance with all applicable laws and regulations. The exact timing cannot be exactly predicted, but the Company is focusing on quick resolutions to the remaining points. 

“We have realised we are breaking new ground with the work we are doing”, says Cecilie Grue, CEO of Element and continues “but we also realise that the knowledge we have on board on this structuring enables us to get a substantial first mover advantage that we potentially should utilise on a much broader scale than just our Iron-ore asset. If done correctly, the Tokens could prove to become a major digital token within the Iron-ore space and beyond.  There are, however, always great risks involved in being pioneers and to some extent we are dependent on factors outside our control”, she says. 

Pending outstanding clarifications, the Company has established a landing page for the planned ICO of the IRON Token on www.iron-ico.com, allowing interested parties to register their interest. Interested parties can sign up to receive updated information on the IRON ICO as the project progresses. Relevant releases, including video links from various media, will also be shared on the landing page.

For further information, please contact:

 

Cecilie Grue
Chief Executive Officer
Telephone: +47 991 62 486
E-mail: cg@elementasa.com