Allens has advised Power Ledger on its ground-breaking Token Generation Event, one of Australia's first Initial Coin Offerings (ICOs), which raised A$34 million for the company.
Power Ledger is a peer-to-peer energy trading company that uses a blockchain-based platform to allow consumers with solar panels and batteries to trade their surplus energy with other consumers across regulated networks and within buildings.
The Token Generation Event involved the creation and sale of 190 million 'POWR' tokens to fund its prospective platform build and help to accelerate its development.
Power Ledger raised A$16.9 million from its public sale event, with more than A$17 million raised in pre-sale offerings.
Allens' Technology, Media and Telecommunications team advised Power Ledger on the documentation for the Token Generation Event, and Allens also provided limited advice on the regulation of cryptocurrencies in Australia.
Based in Western Australia, Power Ledger became one of the world's first blockchain peer-to-peer platforms to transact energy in 2016.
'We are delighted to have worked with Power Ledger on its Token Generation Event, and congratulate the team on its innovative push towards a resilient, low-cost, zero-carbon power system owned by the community,' said Elyse Adams, Senior Associate and leader on the deal from Allens.
The ICO structure is a relatively new but increasingly popular way of using blockchain-based technology to issue cryptocurrency or tokens. ICOs come in many different forms, can be speculative and require a close analysis of the applicability of existing legal and regulatory regimes.
ASIC has recently issued an information sheet about the potential regulation of ICOs under the Corporations Act. Allens has, at the same time, been leading a movement within the sector for the adoption of best practice transparent risk disclosures in token generation documentation.
Allens' work with Power Ledger builds on its market-leading expertise in blockchain and distributed ledger technology, exemplified in its landmark Blockchain Reaction reports.
Allens legal team
Gavin Smith (Partner), Elyse Adams (Senior Associate), David Rountree (Senior Associate) and Simun Soljo (Managing Associate)
Notes for editors.
Allens is a commercial law firm working throughout Australia and Asia. Through its integrated alliance with Linklaters it provides clients access to 40 offices in 28 countries around the world.