Embattled cannabis tech company ParagonCoin is selling the building it had hoped to use as a shared office space for industry startups, according to a Coindesk report. The sale comes after the company was fined $250,000 by the Securities and Exchange Commission and forced to repay its investors last November.
In its most recent SEC filing, ParagonCoin – founded by reality television star and former Miss Iowa Jessica VerSteeg – indicated they had paid $4.02 million for the space less than a year ago. The filing suggests that Paragon is abandoning its plan to host a co-working space for which rent would be paid using the company’s cryptocurrency.
“We currently do not intend to renovate, improve, or develop other properties. We currently do not intend to make further investments in real estate or acquire any interests in real estate and do not intend to make investments in real estate mortgages,” the filing states.
The firm does plan to continue developing its blockchain, seed-to-sale, software – which, too, would require ParagonCoin crypto tokens as secure payments within the system.
In 2017, the firm had raised $12 million through its initial coin offering. Last November the SEC agreed to register the tokens as securities but contended the company should have initially registered those tokens and that Paragon did not qualify for a registration exemption.
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