Russian Agricultural Company Starts ICO to Raise $76 Million


Published on 18 Oct. 2017
Milkcoin

Russian company “KAC” (“ХСК”), located in Voronezh, decided to use a popular way of attracting investments – Initial Coin Offering, or ICO. Fundraising will be carried out through the sale of MilkCoin tokens, created on the basis of Ethereum.

About MilkCoin

Earlier, “Khokholskaja Agricultural Company” tried to attract investments for the agricultural full cycle production by traditional methods, requesting project financing from one of the Russian banks. However, the request was denied, despite the status of the high priority investment project for the Voronezh region and support from the local administration.  

After the successful cryptocurrency fundraising by the “Kolionovo Ecosystem,” that gathered 500 thousand dollars in May this year, possessing only 10 hectares of land, “KAC” decided to use its experience. The owners of “KAC” own about 3.5 thousand hectares; they set much more ambitious goal – to raise 76 million dollars for creating a fully independent farm. It includes the independent growing of grain and feeds crops; purchasing of agricultural machinery; elevator restoration; the building of a factory for mixed feed processing; the building of the facilities and necessary infrastructure for cattle.

MilkCoin isn’t a typical startup, characteristic for cryptocurrency field. The project’s team has already prepared a complete portfolio of project and permission documentation, which is needed for the implementation: estimates, projects of buildings and infrastructure, detailed business plan, financial model, agreement with Voronezh region government. The documentation is available for acquaintance on the website.

Creators of MilkCoin, proving the profitability of their project, have been orienting on the fact that Russia suffers a huge deficit in product sphere, as of 2017. The country cannot provide the needed amount of dairy and meat products, as well as seed crops and mixed feed, which makes MilkCoin a liquid project. The deficit of raw milk will assure the outlet, and the “high priority” status of the project will help to decrease the tax rates.

Crowdsale

To raise the needed funds, 120 million tokens, based on Ethereum, will be released.

ICO will be carried out in five stages, first four will be bonus ones and will provide MilkCoin token with the discount – 90% on the start of the crowdsale and up to 20% at the end of the fourth stage.

The exact scheme of bonus distribution according to the selling time:

• 15.11-18.11, 10 mln. MilkCoin for $0.1

• 18.11-23.11, 15 mln. MilkCoin for $0.4

• 23.11-28.11, 20 mln. MilkCoin for $0.6

• 28.11-03.12, 25 mln. MilkCoin for $0.8

• 03.12-15.12, 50 mln. MilkCoin for $1

This way the team wants to reward early members, who will be able to profit from the selling tokens on the secondary markets. The team is now negotiating with cryptocurrency exchanges - Bittrex, Kraken, HitBTC, Cryptopia, Novaexchange.

However, early investors will also have a significant incentive not to sell their tokens right away, since they will be able to receive much more considerable profit in the long run. Dividends will be provided for token holders (investors), which will be paid out after the 1st of January, 2019. They are planned to reach 70% for early members of ICO.

All unsold tokens will be burned. Also, organizers promise to buy out and burn 10% of all tokens every year, starting from the fourth year after the successful ICO. Tokens will be repurchased at an inflated price of $1,2 and will be calculated in ETH, the second largest world cryptocurrency regarding capitalization.

Also, one will be able to purchase “KAC” products for MilkCoin, i.e., grain, mixed feed, milk. Besides, products, purchased for MilkCoin, will be twice cheaper than ones for fiat.

Conclusion

To conclude, MilkCoin is the biggest ICO project for financing a business from the real sector of economics, which can completely confirm its promises with the detailed documentation and meticulous business plan.

For ICO, the company MilkCoin Est, Liechtenstein, is used, which is the issuer of tokens and counterparty for dividend payments and token repurchase. This will allow creating a legal platform for the investment attraction and the protection of investors’ interests.

Disclaimer: this is a sponsored story; it does not provide any recommendations on investments.

 

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