What do I receive as an investor in La Estancia STO?
When you invest in the La Estancia STO, you will receive your stock/share value in the form of Digital Tokens, also known as Asset Backed Security Tokens. The digital tokens represent a equity ownership stake at a current value of $1 USD per token.
What am I investing in?
An equity position in La Estancia Holdings, Ltd., which owns the real estate assets that produce rental income, the profits of which are paid to La Estancia Holdings Ltd. token holders via dividend payments. Thus, the tokens will represent an ownership interest in one share of the Company’s common stock, par value $0.0001 per share (our common stock).
Who can invest?
Purchasers of the tokens may be any non-U.S. persons qualified to purchase the tokens as determined under the securities laws of each participating jurisdiction (defined in the PPM).
Why invest in a Digital Security Token?
Security Tokens are digital assets that are backed by real assets, like income-producing Real Estate in the case of La Estancia Holdings. Security tokens are an easy, bureaucracy-free way to access investments that may not be easily accessible through traditional investment vehicles.
What is the minimum investment?
Institutional investors must purchase a minimum of $300,000 of La Estancia Digital Security Tokens to participate. Qualified Individual Investors must purchase a minimum of $10,000 of La Estancia Digital Security Tokens to participate.
What is the initial price of a La Estancia Digital Security Token?
The initial price of a La Estancia Digital Security Token is $1.00 USD.
Where can you purchase La Estancia Security Tokens?
Investors may go to www.laestancia.io and click on the “Invest” link for the on-boarding process to purchase La Estancia Digital Security Tokens. Investors will need to provide the necessary information to ensure that purchasers of La Estancia Digital Security Tokens are adhering to and applicable to KYC and AML guidelines.
What is a digital security token?
A digital security token represents a traditional, private security interest. These tokenized financial instruments are able to represent an equity share in a company, an LP interest in a fund or a trust, or a member share in an LLC. Essentially, you’re taking something that you have on paper today and putting an electronic wrapper around it.
Who is behind La Estancia Holdings and what is their experience in real estate?
Armando Cignarale, principal in Cignal Corp, is the original investor and designer of the La Estancia Golf Resort. Cignal Corp is a leading US Real Estate Developer with a portfolio of over US $3.5 Billion of realized projects more than $200 Million under management in several real estate segments both in the US and The Dominican Republic. Cignal Corp. has long standing relationships with the Dominican Republic’s government, businesses and its citizens.
What is the difference between an ICO and STO?
ICOs were a non-regulated form of fundraising founded by startups for speculative cryptocurrency companies. They were based on “utility tokens” that give no participation whatsoever in the results or ownership of these projects, only access to services. STOs are legally registered securities that represent real assets and entitle owners to direct participation (via results or ownership) in the assets and/or projects that they represent.
Are security tokens cryptocurrency?
No. Cryptocurrency, mainly Bitcoin and Ether, brought a series of new technologies (blockchain, consensus algorithms, proof-of-work) that can be used in other applications unrelated to cryptocurrency. Bitcoin created the possibility of transferring funds easily and globally without depending on a centralized entity. Ethereum expanded this idea by introducing “smart contracts”, enabling the programming of these functions. Security tokens, using these technologies, bring new products and distribution formats to the financial market. The objective of the securities is not to serve as a value reserve or means of payment (like cryptocurrencies) but rather to represent the investment in an underlying asset.
Why digital security Tokens?
Digital security tokens replace paper certificates with digital tokens on the blockchain. Digital security tokens enable liquidity, trading scalability, and new financing models that benefit both the investor and the issuer. For the last 1,000 years, ownership of assets were managed by all parties to each transaction by signing paper certificates. With tokenized securities, the tokens themselves are a proxy to traditional sale terms found within any asset purchase, and each token can trade just like shares, within regulations.
What is a SMART contract?
Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. Smart contracts permit trusted transactions and agreements to be carried out more efficiently compared to traditional contractual transactions. Indeed, each token contains a smart contract that render transactions traceable, transparent, and irreversible.
What documents will I receive as an investor?
Investors will receive audited annual financial statements of La Estancia Holdings within ninety (90) days after the end of each fiscal year, or soon thereafter as reasonably possible. Unaudited quarterly reports will be provided to Investors within twenty-one (21) days after the end of each calendar quarter. The Issuer, at any time, in his or her discretion, may furnish additional reports to the investors as deemed appropriate. The investor will also receive a login to access financial statements via the token issuance platform, found at https://www.securitize.com/laestancia
Will there be dividends?
Yes, there will be dividends attached to the La Estancia Digital Security Tokens. At the moment we anticipate the dividend yield to be a minimum of 8% p.a., however La Estancia Holdings does not guarantee any specific dividend yield due to the risk factors detailed in the PPM.
How do I get my dividend?
The payment of dividends will be distributed in USD and will paid out directly into the bank account specified by the investor on the platform.
Why is the offer being held in the Cayman Islands?
Cayman regulations are more advanced in relation to digital assets and carry potential tax benefits associated with the properties. La Estancia Holdings has ongoing Real Estate activities in the Caribbean and plans to offer multiple STOs throughout the region.
Why a USD $8.5 Million offer size? Isn’t it a small amount?
The collection of assets comprised in this initial offering were carefully selected to optimize potential returns for investors. We opted for a size that was developed for speed of issuance and to serve as an investment introduction to larger subsequent offerings. Since it is a diversified portfolio of luxury real estate assets, with higher liquidity and under commercial leasing contracts, it guarantees the best possible outcome for token holders and a solid introduction to STOs for investors.
What are the offerings compliance procedures?
The offering follows the same rigid compliance standards demanded by any applicable jurisdiction.
Will there be liquidity?
We will take the necessary steps to provide liquidity. La Estancia Holdings intends to have the tokens listed on alternative trading system (ATS) exchange) allowing for token trading on the secondary market. However, La Estancia Holdings does not guarantee any listing will occur.
What is a whitelist?
A whitelist is a list of people or items that are granted access to a certain system or protocol. When a whitelist is used, all entities are denied access, except those included in the whitelist.
What other benefits do I have as an investor in La Estancia Digital Security Tokens?
Investors having a preemptive right to participate in a future offering by La Estancia Holdings, LTD or its affiliates . In addition, qualified individual investors may be entitled to obtain residency and citizenship status in The Dominican Republic.
*Additional legal expenses may need to be incurred
Does my token give me the right to stay at the La Estancia Golf Resort for free?
No. There will be no free perks attached to La Estancia Digital Security Tokens regarding free hotel rooms or accommodations at the La Estancia Golf Resort.
Where and how do I keep my tokens?
You can keep La Estancia Digital Security Tokens in any wallet that supports ERC-20 tokens. However, you can transfer these to other wallets if you choose to. The following wallets are known to be compatible with Ethereum tokens (ERC-20 standard): MyEtherWallet (no download needed), MetaMask (Firefox and Chrome browser add-on), Mist (Desktop), Parity (Desktop).
How can investors track their investment?
Investors can track their investment via La Estancia Holdings investor portal, where they have access to a Dashboard with transparent data on investments, allocation, results, cash position, etc.
What is the potential gain for investors?
Because the assets are a curated portfolio of residential real estate properties offered under a commercial lease, investor returns are expected to be a minimum of 8% p.a.
How can investors monetize their positions?
Investors can monetize their investment by receiving dividends (100% of post-cost profits will be paid out as dividends) or by selling their tokens in the secondary market.
Where will the tokens be held in custody?
The tokens will be held in custody by Paxos (www.Paxos.com)
What is the typical profile of investors in these assets?
Investors already familiar with blockchain technology and digital assets, and who are seeking investments to which they wouldn’t have access via traditional instruments.