tZERO TZROP Token Holders Approve Conversion to Preferred and Common Stock

In a landmark decision for the digital securities space, tZERO Group, Inc., a leading innovator in blockchain-powered multi-asset infrastructure, announced that the required majority of holders of its Preferred Equity Tokens, Series A (TZROP), have approved a conversion plan. Under the approved proposal, each TZROP share will be converted into three shares of tZERO Series B preferred stock and eight shares of tZERO common stock. The vote saw strong participation, with 1,594 holders voting a total of 15,164,076 shares, representing 72.2% of outstanding TZROP shares. Of those, 84.6% were cast in favor, surpassing the required simple majority. CEO Alan Konevsky expressed gratitude for the support, noting that the conversion addresses structural complexities in the capital structure and aligns the company with its early investors, who will now own approximately one-third of each Class B share and common stock. This move is a strategic step forward as tZERO continues to commercialize independent, integrated, regulated infrastructure for the entire lifecycle of tokenized assets.

Following the conversion, tZERO's largest shareholder, Bed, Bath & Beyond, Inc., has indicated its intention to lead up to $10 million in additional capital through a proposed convertible note financing, which may be secured. Eligible existing tZERO investors and other qualified parties interested in participating on similar terms can contact tZERO at ir@tzero.com. The conversion process is expected to be consummated in the coming days, with tZERO providing updates as steps are completed. This development underscores tZERO's commitment to streamlining its capital structure and fostering alignment with its investor community, particularly early supporters who have held TZROP tokens since their inception.

tZERO Group, Inc. and its broker-dealer subsidiaries offer an innovative liquidity platform for private companies and assets, providing institutional-grade solutions for digitizing capital tables via blockchain technology and enabling trading on an alternative trading system. By democratizing access to private assets, tZERO aims to provide a simple, automated, and efficient trading venue for broker-dealers, institutions, and investors. The company's technology services are offered through tZERO Technologies, LLC. For more information, visit their website. The approval of this conversion marks a pivotal moment for tZERO, potentially setting a precedent for how digital asset securities can be restructured to benefit both the company and its token holders.