Telegram proposes to postpone the launch of TON until April 30th, 2020.
A letter has been sent to the investors which says:
“We were going to launch the SOUND network in October. But the latest SEC lawsuit made this timing impossible”.
At this point, they propose to investors either to accept a six-month deferral, or to receive a refund of 77% of the capital invested.
Investors have time to decide until October 23rd, the day before Pavel Durov’s meeting with SEC representatives.
Telegram says it does not agree with the SEC’s position and that it intends to defend itself in court. To do so, they need to postpone the launch of TON and the Gram token for at least six months.
The letter reads as follows:
“We had intended to launch the TON network in late October. However, the recent SEC lawsuit has made that timing unachievable. We disagree with the SEC’s legal position and intend to vigorously defend the lawsuit. We are proposing to extend the deadline date in order to provide additional time to resolve the SEC’s lawsuit and work with other governmental authorities in advance of the launch of the TON network. This time also will allow third parties to develop more applications based on the TON test network”.
In addition, under the terms of the Gram token purchase agreement, the postponement of the release date requires the agreement by the owners of the majority of the tokens.
At this point, Telegram also proposes to make some limited changes to the terms of the purchase agreements, which would, however, remain in force, including a reduction in the issuance of Gram tokens.
In fact, the letter to the investors also states:
“In these circumstances, we propose to make certain limited amendments to the terms of the purchase agreements that remain in place to reflect the fact that fewer Grams will be issued and in circulation on the Network Launch Date. This is described in more detail in the attached letter”.
Finally, they assume that, if the release date were actually postponed, they could incur expenses of about $80 million until April 30th, 2020, presumably for the lawsuit against the SEC.