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THE ASPENCOIN - A CASE STUDY

■ Maximize Revenue  

■ Increase Occupancy During Off Peak Seasons 

■ Selective Renovations To The Hotel 

 Increase Margins On Food And Beverage Sales 

 Improve Marketing And Management Of The Resort 

 Increase Brand Recognition 

Build Up ADR (Average Daily Rate) 

CONCLUSION

SolidBlock technology enabled the first successful CRE issuance on the Blockchain. This was a combination of technical innovation along with an intensive campaign which raised $18 million for ER. 

SolidBlock's knowledge, strategic planning, technical expertise and service oriented focus, led to the rapid development of a securitized smart contract  and management platform.  

The SolidBlock platform enables the creation of fractional ownership in a transparent environment, enabling the trade of real estate in the form of tokens on the blockchain. SolidBlock has a clear understanding of blockchain, real estate and the securitization industry and is result oriented.

SolidBlock is committed to both immediate and long term results, working with a global network of partners to ensure successful offerings and growing the market for secondary trading of private assets.

In mid 2018, SolidBlock was approached by Elevated Returns (ER), a New York based asset management company servicing the hospitality, real estate and consumer brand industries, in order to provide their technology to facilitate their security token offering of the coveted St. Regis Aspen Colorado resort.  

One of ER’s key focuses is the recapitalization of high-end properties around the world.  The objective to raise capital for St. Regis Aspen was in order to:

As traditional raising of capital did not yield the required amount of funding, alternative solutions were explored.

FINDINGS


 Capital required: $18 million 

 Equity value: 19.14%

 ER's multi prong approach to secure funding included digitizing the offering to qualified investors

 ER engaged SolidBlock to tokenize the equity through a security token issuance on the blockchain

 For the first time in US history, a blueprint for future real estate tokenization was effectively mainstreamed, providing global exposure, public access, liquidity, transparency and most importantly, fully regulated and compliant, in accordance with SEC regulation.  This entire process was effectively executed by SolidBlock

 Nearly one-fifth of the equity deal sold through digital tokens

TRADITIONAL OFFERINGS vs. TOKENIZED OFFERINGS 

 Assets are paper certificates

 Higher admin costs involved

 High liquidity risk

 Market slow down/crash - difficult for investors to exit (5-10 yr lockup)

 More challenging to manage transaction

 After NOI - expenses = profits, pecking order for dividends

 High liquidity cost - should investors choose to exit, penalties and taxes, additional broker and attorney fees

Traditional 

 Securitized tokens replace paper certificates 

 One Master document 

 Low liquidity risk 

 Market slow down/crash - investor has an exit strategy 

 Easier asset acquisition (financing model benefits both issuer and investor)

 Asset is liquid 

 Easily tradable 

Digital Secured Asset 

ASPEN'S TOKEN ISSUANCE PROCESS DELIVERED BY SOLIDBLOCK 

Phase 1: 
Aspen Strategic Planning

Phase 2: 
Aspen Offering Documents

Phase 3: 

Aspen Smart Security Development, Launch and Management Tokenization

Phase 4: 
Smart Contracts Audited By 

 

 Overview of the business, risks, financial reports

 Offering details

 Regulatory planning

 Corporate structure 

 Incorporation location 

 Target jurisdictions

 Tokenization structure

 Dividend distributions

 

 

 Whitepaper

 Offering Memorandum

 Private Placement

 Sales Agreements

 Working with Aspen’s premier legal team:  Clifford Chance


 

 Set up infrastructure for Issuer and Investor (incl. backend)

 Price per Aspen Digital Token:  $1.00 per share

 Hard Cap set at: $18 million 

 Tradable Currencies:  USD, EUR, BTC or ETH

 Sec Trading restricted to trades by existing securities regulations

 Platform Management - provide ongoing support per token limits set for raise

 Website offering - market and promote high end fully compliant website to qualify accredited investors (built-in KYC and AML international rules)

 Date when offering ends


 

 E&Y

 KPMG


The Iconic St. Regis Brand

Trophy property: 179 units

Property Appraisal Value: $224million

Mortgage: $130 million

Equity: $94 million

NOI: $13.2 million

For the first time in US history, a blueprint for future real estate tokenization was effectively mainstreamed, providing global exposure, public access, liquidity, transparency and most importantly, fully regulated and compliant, in accordance with SEC regulation. This entire process was effectively executed by SolidBlock.