Agenus Healthcare Firm Launches New Biotech Electronic Security Token (BEST) to Raise $100 Million
The healthcare firm Agenus, which focuses on immuno-oncology, will be launching its Biotech Electronic Security Token (BEST), one of the first security token offerings in the health care industry. Agenus has a pipeline of immune modulating antibodies, cancer vaccines and adoptive cell therapies. The information was released by the company on January 29 in a press release.
With this tokenization, investors will have the possibility to invest in biotech products and preserve shareholder equity.
Another way of raising funds is through an Initial Coin Offering (ICO). However, the company decided to release a security token to the market which aims at being compliant with local regulatory agencies and the legal framework. According to Garo Armen, the Chairman and CEO of Agenus, this Security Token Offering (STO) will allow investors to take part in the development of therapeutic products. With the funds gathered, the intention is to finance the development of several drugs.
About it, Mr. Armen commented:
“Today, by announcing the first of its kind asset backed digital security offering in healthcare, we open the doors for a transformative financing vehicle. We believe this unique structure will pave the way for allowing targeted investment by qualified investors in the development of therapeutic products. This instrument, powered by blockchain technology, enables us to revolutionize the financing of drug development.”
Each of these tokens will be representing a portion of future US sales of AGEN2034, an antibody released by the company that is now in clinical trials. With the funds gathered, the company will be financing the development, commercialization and distribution for the AGEN2034.
The company will also be working with Gilead, that provided $150 million in up-front cash and will be providing $1.7 billion in future fees and milestones to fund activities. The BEST token provides investors with an attractive risk-return profile.
The BEST token is a blockchain-based security that will be issued being compliant with the Regulation D of the Securities Act of 1933. With BEST, holders will be entitled to a defined multiple of the original purchase price upon redemption.
As Initial Coin Offerings experienced several issues and were considered securities by the U.S. Securities and Exchange Commission (SEC), companies and projects started to release STOs. These STOs are compliant with local regulations, as mentioned before.