Figure Technology slides after unveiling blockchain stock offering

Figure Technology Solutions' FIGR.O shares down 9.4% at $38.29 early Tues after announcing offering of blockchain-native class of equity securities

In a filing late Mon, the blockchain lender disclosed it would sell Series A Blockchain Common Stock

The blockchain stock will trade on FIGR's alternative trading system (ATS) and will be convertible into shares of co's Class A Common Stock on a one-for-one basis

Selling stockholders agreed to sell shares of Class A Common to the offering's underwriters, Goldman Sachs, Morgan Stanley and Cantor Fitzgerald

In turn, the underwriters will sell those Class A shares to FIGR, which will sell shares to purchasers in the proposed offering

"Should any shares of Class A common stock acquired by the underwriters not be sold to us, the underwriters intend to sell such shares of Class A common stock into the open market, and the number of shares of blockchain stock to be sold in this offering will be reduced accordingly," according to the filing

“This is a new capital markets infrastructure moment for efficiency and risk management — a huge leap forward from the legacy securities market infrastructure, and the start of a world that no longer needs it,” exec chairman and co-founder Mike Cagney said in a statement

FIGR went public in Sept after co and some of its backers sold 31.5 mln shares in IPO priced at $25

6 of 8 brokerages rate FIGR "strong buy" or "buy", 2 rate "hold", their median PT is $51.50, per LSEG