Top Level Domain Holdings has announced the company has agreed that a funding facility up to $15 million be set up to allow for the acquisition of gTLDs at auction.
The additional funding is conditional and will be provided solely in exchange for a perpetual share in the gross revenue generated by any gTLD string acquired through auction.
Top Level Domain Holdings announced that under the funding agreement, they have the right to call up to $10m, to be used exclusively to acquire from ICANN the right for the Company to own and operate the Auction gTLD. The funding provider has the right to increase its funding by up to a further $5m. The funding providerâs participation will be limited to a share of the gross revenues from the future operation of the Auction gTLD. The funding is not repayable other than through the gross revenue share. TLDH will retain sole management rights and responsibilities in the running of the Auction gTLD.
âWe believe that this funding model provides an attractive way to secure the resources to participate in an auction of those contended strings that we believe have significant revenue potential, while at the same time avoiding dilution to our shareholders,â said Fred Krueger, executive chairman of Top Level Domain Holdings.