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The issues with SEC have enforced Telegram to postpone the deadline for launching its Telegram Open Network (TON).
Telegram has informed its investors that the TON blockchain project will be launched later than it was previously planned, six months later, exactly on April 30, 2020.
In an email to investors Telegram said it had a lot of problems and ‘run-ins’ with the Securities and Exchange Commission (SEC), that came by with the restraining order made to forbid this messenger app company from launching TON and issuing its Gram tokens. SEC decided to treat Grams as unregistered securities.
This email reads:
“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.”
As per their announcement, this additional time should come as an upper hand for companies that are working on applications for the TON network.
However, it also says the deadline could be extended even more if all investors get to agree. Still, those investors who are giving their voice have to hold a majority of the tokens bought in the round.
There are actually two groups of investors. The first one gathers those who bought tokens back in February 2018 and the second one has those who bought them in March 2018. Both groups will need to approve this augmentation separately, and there could actually be a situation where one group agrees to the extension and others don’t.
“In these circumstances, we propose 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,” explains the company.
Those who had invested during the second round have to sign a form in which they are confirming that they agree for the extension before Oct. 23. If most of them choose not to sign, these investors can get back “approximately 77 percent” of their money.
The letter noted that the first-round investors received “a separate communication” from the company.
If it happens that deadline extends, Telegram plans to spend another $80 million before April 30.
“We look forward to receiving your support to ensure we can proceed with our vision for TON.”
A week ago, the SEC acquired an emergency restraining order to halt the launch of TON. After that happened, Telegram immediately notified its investors it might delay the planned end-of-October launch to resolve the situation.
Be it as it may, SEC will probably not allow Telegram to get off easy.
As Coinspeaker has already reported, a court hearing in the case is scheduled on Oct. 24 in New York.