Coinstreet – an award-winning professional consulting and advisory firm for digital assets; StormHarbour Hong Kong – a Hong Kong SFC-licensed corporation, and a member of a global investment advisory group; and Securitize – a leading solution provider and SEC-registered transfer agent, broker-dealer, and alternative trading system operator, jointly announced their collaboration to launch Rich Glory Coin (“RGC”) – a security token offering (“STO”) and a conventional note offering for accredited investors in the US and for certain non-US Persons outside the US. The offering is made pursuant to Rule 506(c) to accredited investors in the US and to certain persons outside of the US pursuant to Regulation S, each under the United States Securities Act of 1933, as amended.
RGC is issued by Success Plus Global Limited (“Issuer“), which wholly-owned subsidiary is the contractor and operator of Kongnan Block oil fields with a combined total area of 31.29 km2 in the PRC (“Project“), which has proved and probable reserves of about 3.1 million barrels (MMbbl) and 4.7 MMbbl respectively as at 31 December 2021. For the two years ended 31 December 2021, the Issuer group had total gross oil production of 482,563 barrels (Bbls) and 469,554 Bbls respectively, representing an increase of approximately 2.8%, while net production entitlement to the Issuer group has increased approximately 32% from 275,195 Bbls in 2020 to 364,894 Bbls in 2021. Such increase was principally due to the higher production sharing ratio entitled by Issuer group for increased drilling efforts with new wells deployed in 2021. Net proceeds from the STO and note offering will be used for future expansion of oil production from the Project and other general corporate purposes.
RGC offers up to a maximum of USD25 million debt instrument (through single or multiple tranches), while bearing interest at the fixed rate of 4.5% per annum, payable semi-annually, plus an additional upside return based on the then oil price at maturity, due on the third anniversary from the date of original issuance. Furthermore, the debt instrument will be subject to a put option exercisable by holders thereof before the first anniversary of closing.
RGC offering will start on June 9, 2022, and is available for accredited investors in the US and to certain non-US Persons outside the US. To cater for both traditional investors and crypto-savvy investors, the offering is available in both conventional uncertificated form and digitized blockchain token form. RGC will be traded on Securitize’s ATS secondary trading exchange upon the expiry of the respective lock-up period subject to the relevant rules, regulations and guidelines of the investor’s respective country of origin.
Coinstreet is the global lead consultant and coordinator and StormHarbour is the asset manager of the Issuer of the RGC. Securitize Markets is the broker-dealer and ATS provider; and Securitize, LLC is the transfer agent and solution provider for tokenizing/issuing and managing RGC token throughout their lifecycle.
Founded in 2017, Coinstreet is an award-winning professional advisory and consulting firm in the Digital Asset sector. Coinstreet Partners also offers innovative technology, business and operation solutions, covering four key business segments including: (1) Primary Market, Asset Tokenization & Initial Offerings, (2) Metaverse Solutions & Non-Fungible Tokens (NFT), (3) DeFi, Prime Brokerage and Private Banking, (4) Asset Management, Tokenized Funds & Digital Asset Custodian. Coinstreet is a co-organizer of TADS Awards – the world’s first international award for the Tokenized Assets and Digitized Securities sector that was first held in 2020.