tZERO still negotiating funding from Makara and GSR Capital; misses mid-April target

tZERO, Overstock’s blockchain subsidiary, has failed to meet its mid-April goal to raise a $100 million in funding, according to a shareholder letter dated April 18. The company is still negotiating the investments from Makara and GSR Capital, the latter of which already has a binding funding obligation for $30 million due May 6 following an earlier security token purchase agreement. 

While noting Makara’s due diligence has made progress, Overstock CEO Patrick Byrne stated “the parties will not have a definitive deal in place by the mid-April target.” The letter added tZERO "is not under any exclusivity with Makara or GSR and has retained advisors to pursue parallel alternatives." Should the companies come to an agreement, shareholders will be notified.