Spirit Blockchain Capital Inc., a provider of blockchain and digital asset investments, and Vesta Equity Inc., which specializes in tokenization of residential equity, jointly announced that Spirit Blockchain will make a strategic investment in Vesta Equity.
Under the investment, Spirit will acquire 270,727 common shares of Vesta Equity, which is equal to 2 percent of its issued and outstanding common shares. Spirit will in turn issue 2,054,722 common shares to Vesta on a private placement basis at a deemed price of approximately $0.085 per share.
The common shares to be issued to Vesta Equity will be subject to statutory resale restrictions for a period of four months and one day from issuance. The investment remains subject to regulatory approval.
Spirit and Vesta said they intend to collaborate on initiatives focused on innovating the real estate investment sector, enhancing the scope of investment options and introducing novel opportunities for asset owners and investors.
Lewis Bateman, CEO of Spirit Blockchain Capital, articulated his enthusiasm for the partnership.
“Our collaboration with Vesta Equity is more than strategic; it’s transformative,” he said in a release. “We stand on the brink of unlocking tremendous value in the real estate sector through tokenization, perfectly aligning with our pioneering vision in the digital asset arena.”
Vesta’s platform is engineered to allow property owners to access equity without resorting to debt. It allows individual and institutional investors to purchase tokens that represent equity in residential properties directly.
Company leaders say this model facilitates property appreciation and additional income through coupons and dividends but also enables the construction of diversified real estate portfolios akin to stock investments.
Michael Carpentier, co-founder and CEO of Vesta, highlighted the impact of the alliance.
“In partnership with Spirit Blockchain Capital, we are set to modernize the interaction between homeowners and investors in real estate equity,” he said. “Our platform democratizes access to real estate investment, offering direct, transparent, and fractionalized investment opportunities, thus providing liquidity and exceptional risk-adjusted returns.”