Real estate company, Max Property Group, launches an equity round of €3,750,000, selling tokenised shares in its company to fund the completion of its crowdfunding platform.
Max Property Group B.V. (MPG) is raising a total of € 3,750,000 for 20% of its shares in 5 phases of €750,000 each. Over 70% of the first phase has already been subscribed, meaning the minimum (softcap) of €500,000 has already been reached. Funds raised are to be used to officially launch their international real estate crowdfunding platform, Max Crowdfund, including native Android and iOS apps, and to obtain the required licenses from European financial authorities.
Max Property Group has been operational since 2016 as a real estate business, offering property funds, management services and property sales. The company currently has over €7,000,000 of property assets and operates four property funds in the United Kingdom, Netherlands and Germany.
The company has been developing the Max Crowdfund platform since late 2017, and the new 2.0 platform is now reaching its final stage of development. Max Crowdfund is already operational with 75,000 global users and functionalities such as registering accounts with automated KYC/AML functions and offering multi-currency investment options.
The true potential of the Max Crowdfund 2.0 platform will be unlocked when Max Property Group is able to open the system to third party property listings. This will enable real estate developers and owners to realise financing of their projects with real estate as collateral. Investors will be able to invest in real estate worldwide from as little as €100.This feature is almost ready to be released, pending regulatory approval from the Dutch financial authorities, the AFM. The application was submitted in October 2019 and the AFM has up to 13 weeks to respond.
Security Tokens
With an established business, over €7,000,000 of property assets and booming international real estate market, Max Property Group considers itself to be well positioned for an equity based fundraise. Since Max Crowdfund is built on blockchain technology, it was a natural decision to launch the equity round using security tokens.
The tokens, entitled MPGS, were issued on the IGNIS blockchain using Ardor technology. Each MPGS token represents one share certificate. Through a regular share issue, 20% of the shares in MPG have been allocated to the cooperative, Max Property Cooperative U.A. (MPC). MPC issues the share certificates (MPGS) and represents the interests of its members, the investors in MPGS. The issue of share certificates takes place under the applicable European exemption rules for the issue of shares under the supervision of the Dutch authorities.
Photo by Kees Streefkerk on Unsplash
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