The SEC filing relating to $700M was not for an additional financing event. The filing instead relates to grants for hbars to Hedera employees, founders, contractors, advisors, and certain early service providers.
Those grants provide for the recipient to receive coins in the future, typically over a four-year period. Our view is that the coins released under these grants should not be viewed as securities at the time they are delivered. However, there is uncertainty about the characterization of hbars before they are delivered, and it remains possible that hbars will be deemed to be securities even at the time of delivery.
In addition, the grants themselves are contracts for the future delivery of coins and may be viewed as investment contracts. Because of the uncertainty, to ensure the grants are compliant under either outcome, we have decided to treat the grants as we would need to if the SEC were to view the grants and/or the hbars as securities. That includes ensuring that each of the grants falls within a securities law exemption, and filing the associated forms. The dollar value of the grants reflected in the SEC filing is based on the “fair market value” of the grant. Because there is not currently a market for hbars, we used the $0.12 price from our last round of financing.