Investors in Bitfinex’s Hampton Hotel securities offering are reportedly entitled to a refund after its fundraiser failed to meet its $500,000 goal to build a hotel near El Salvador’s airport.
Local news outlet El Salvador.com reported that the ‘Relevant Information Document’ on the HILSV token used in the public offering has a clause that allows investors to refund their investment should the fundraiser fail to hit its target.
The document, published on May 13, says a refund is available if either, “the minimum amount (minimum amount necessary to carry out the project), which for this issue will be five hundred thousand US dollars ($500,000.00), is not reached at the end of the public offering or (ii) if the issuance of the digital assets is canceled.”
The token has only reached $342,000 since its launch on May 13. That’s $158,000 shy of the minimum sum required by the June 11 deadline. It had hoped to reach a total of $6.25 million.
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However, the hotel might not be done for. The token’s issuer, Inversiones Laguardia, told Protos that the firm “already has commitments for the entire raise” and that its “goal with tokenization is to reach the largest number of retail investors possible.”
This is despite the HILSV document claiming $500,000 was the “minimum amount necessary to carry out the project” during this issuance.
The public securities offering was to help build the five-storey hotel which it was claimed would have 80 rooms, a pool, and a garden, among other amenities. It also offered investors free nights and even unlimited stays over a five-year bond term if at least $1 million was invested.
3D rendering of the hotel from Bitfinex’s site.
The token was reported to be tradable with US dollars and USDT but the latter cannot be found on Bitfinex’s site or ‘Relevant Information Document.’
El Salvador.com wanted a comment from Inversiones Laguardia and visited its listed headquarters address only to find another company called Inglés Corporativo. Someone answering Inversiones Laguardia’s listed phone number also claimed it belonged to another company.
According to the HILSV document, investors can get their refunds via the same channels through which they made their initial investment.