Primary issues

Raising capital for new issues of tokenized securities

When a security token is first issued, an opening balance of the security token can be created by the issuer either for itself or for a nominee. The issuer or its nominee can then offer their security tokens to a Primary issue manager contract on the Verified Network that creates a liquidity pool which sets a price curve for subscriptions to the new issue.

Subscribers to a primary issue can purchase the security token from the liquidity pool created by swapping in the currency token paired with the security token with the Offer function called on the Primary Issue Manager contract.

The offer of security tokens in a liquidity pool can be underwritten by licensed Asset Managers on the Verified Network. Registrar and Transfer agents for the security token can then start the issue and also set an end date for the primary issue. Once the primary issue ends, Registrar and Transfer agents can make allotments of security tokens to subscribers, refund subscriptions back to those whose subscriptions are not accepted, and settle subscription capital to issuers of the security token for which primary issue was run.