Hedera Hashgraph (HBAR)

Hedera Hashgraph SAFT Series 1 was offered to employees, other early contributors and advisors, friends, and family in an offering exempt from registration under the Securities Act of 1933 (the “Securities Act”). Under SAFT Series 1, Hedera raised $4.7 million from 40 purchasers. The original price per coin was $1.00, based on an original total supply of 50 million coins. After Amendment No. 1, the adjusted purchase price was $0.001 per coin. Hedera sold 4.9 billion coins (split-adjusted) through SAFT Series 1, which represents 56% of all coins sold via SAFTs and 9.8% of the total coin supply. The SAFT Series 1 offering commenced in December 2017 and final investment forms were received by January 2018.

SAFT Series 2 was offered to employees and contractors, friends and family, and strategic partners, advisors and investment funds in an offering exempt from registration under the Securities Act. Under SAFT Series 2, Hedera raised $14.5 million from 80 purchasers. The original price per coin was $5.00, and the split-adjusted price following Amendment No. 1 was $0.005 per coin. 2.9 billion coins (split-adjusted) were sold through SAFT Series 2, which represents 33% of all coins sold via SAFTs and 5.8% of the total coin supply. The SAFT Series 2 offering commenced in January 2018. Approximately 95% of SAFT Series 2 purchases occurred in January and February 2018, with some final investment forms received through mid-March 2018. As with SAFT Series 1, the original terms for coin release for SAFT Series 2 provided that 20% of the coins would be released upon Network Launch, and 20% on each of the subsequent four anniversaries of Network Launch. Amendment No. 1 changed the distribution schedule to provide that the initial 20% would not be released until at least six months after Network Launch. Following an additional amendment approved by the holders of SAFT Series 2 in August 2019, coins from SAFT Series 2 are being released to purchasers on a more gradual basis to better align with expected network growth: 5% were released to SAFT Series 2 purchasers on the date of Open Access, 5% were released in the seven days following Open Access, and the remainder of the coins are being released at least monthly, over a period that ends in September 2022.

SAFT Series 3 was offered to institutional investors and accredited investors in an offering exempt from registration under the Securities Act. It was completed in two phases. The first phase (3a), which commenced in mid-April 2018, targeted institutional investors. Under SAFT Series 3, Hedera raised approximately $103.8 million, with $83 million coming from this institutional phase. SAFT Series 3 resulted in 922 million coins sold in total, which represents 11% of all coins sold via SAFTs and approximately 1.9% of the total coin supply. This sale offered purchases HBAR at $0.12 per coin (based on a total supply of 50 billion coins) with an 8-month release schedule (monthly distributions), with 20% of coins to be released no sooner than 6 months after Network Launch followed by 10% of coins released monthly over the following 8 months. A total of 528 purchasers chose SAFT Series 3A, investing a total amount of $81.5 million for 680 million coins. The first release of coins under SAFT Series 3A occurred at Open Access on September 16, 2019, and monthly distributions have occurred as planned and will continue to occur through May 16, 2020.

Hedera Hashgraph SAFT Series 1 was offered to employees, other early contributors and advisors, friends, and family in an offering exempt from registration under the Securities Act of 1933 (the “Securities Act”). Under SAFT Series 1, Hedera raised $4.7 million from 40 purchasers. The original price per coin was $1.00, based on an original total supply of 50 million coins. After Amendment No. 1, the adjusted purchase price was $0.001 per coin. Hedera sold 4.9 billion coins (split-adjusted) through SAFT Series 1, which represents 56% of all coins sold via SAFTs and 9.8% of the total coin supply. The SAFT Series 1 offering commenced in December 2017 and final investment forms were received by January 2018.