Telegram proposes to postpone TON blockchain project launch to April 2020, seeks investors’ consent
Thu, 17 Oct 2019, 11:12 am UTC
Messaging giant Telegram is looking to push back the launch of its TON blockchain project to April 30, 2020, from the initial deadline of October 30, 2019.
The postponement of the launch plans follows after the U.S. Securities and Exchange Commission (SEC) obtained a restraining order against Telegram and its wholly-owned subsidiary TON Issuer Inc., alleging that the firms conducted the sale of their Gram tokens in violation with the federal securities laws.
In an email to investors (as reported by CoinDesk), Telegram said:
“We had intended to launch the TON network in late October. However, the recent SEC lawsuit has made that timing unachievable. We disagree with the SEC’s legal position and intend to vigorously defend the lawsuit. We are proposing to extend the deadline date in order to provide additional time to resolve the SEC’s lawsuit and work with other governmental authorities in advance of the launch of the TON network.”
Telegram further said that the deadline could be extended with the consent of investors who hold a majority of the tokens.
The company sold its Gram tokens to accredited investors in two phases – one held in February 2018 and the other in March 2018, raising a staggering $1.7 billion. As such, it has two groups of investors, who need to give their consent separately to extend the deadline.
In case, one of the groups refuses to postpone the launch plan, Telegram proposed to make “certain limited amendments to the terms of the purchase agreements that remain in place to reflect the fact that fewer Grams will be issued and in circulation on the Network Launch Date.”
The recent letter was addressed to investors who participated in the second round. The investors in the first round received a separate communication.
The second round investors are required to sign an extension approval form by October 23. If the majority of investors choose not to sign and approve the extension, they can get back “approximately 77 percent” of their money.
Telegram said that it plans to spend an additional $80 million on the project should the deadline gets extended.
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