XY Labs� Class A Common Stock Begins Trading on the tZERO ATS

SAN DIEGO–(BUSINESS WIRE)–Today, XY Labs, the company behind the world’s first blockchain geospatial oracle network backed with cryptography, announced its Class A Common stock commenced trading on tZERO�s tZERO ATS. tZERO ATS is a transparent, continuous, and automated marketplace, which provides a regulated and compliant venue for the trading of digital securities. XY Labs raised approximately $22 million in 2018 from over 23,000 investors, and today marks the first time that XY Labs shares are available for secondary trading, democratizing access to unique assets and enabling price transparency and low-friction continuous liquidity for equity resales in the private company.

XY Labs CEO Arie Trouw shared, “We are thrilled to provide our shareholders with access to shares on a regulated and efficient trading venue for the first time, increasing shareholder value while remaining private. Trading on tZERO’s efficient, transparent, and compliant alternative trading system provides XY Labs’ investors with new benefits, including continuous liquidity, real-time settlement, and low trading fees.”

Investors with an account at tZERO’s retail broker-dealer subsidiary, tZERO Markets, are now able to trade the XY Labs digitally enhanced security. Investors looking to open a tZERO Markets brokerage account should visit https://www.tzero.com/investors/register.

tZERO CEO David Goone noted, “The addition of the XY Labs digitally enhanced security to the tZERO ATS is exciting as we strive to expand the digital securities trading on our platform by growing assets offered and the number of investors utilizing the platform. We are excited to welcome XY Labs shareholders onto tZERO Markets and look forward to continuing our collaboration with XY Labs as we work to increase the scale of our product offerings across business lines.”

XY Labs’ stock uses tZERO’s smart contract technology built on the Ethereum Blockchain. XY Labs utilizes Vertalo’s SEC-registered transfer agent services to manage its capitalization table.

Vertalo CEO and Co-Founder Dave Hendricks said, “Vertalo is honored to collaborate with XY Labs and tZERO to improve the investor experience and democratize access to XY Labs’ equity through our digital asset transfer agent services. We expect that many pioneering companies like XY Labs, building web3 applications, will also transform their traditional equity to make it tradeable and transferable on ATS platforms like tZERO.”

Founded in 2012, XY Labs’ extensive experience with consumer hardware, global community, and app development has allowed it to become an expansive company offering a significant variety of tools and technologies to change the user’s experience and interactions with the physical world. These tools and technologies include XYO, a distributed blockchain network of nodes that introduces additional certainty and information in real-time and validates real-world data using geospatial, temporal, and other metadata, COIN, an app with over five million downloads that allows users to earn digital assets for validating geospatial location and other data, and XY Find It, the XY4+ Bluetooth Item Finder that allows users to quickly and seamlessly find misplaced items.

Investor Notice

Investors should note that trading securities could involve substantial risks, including no guarantee of returns, costs associated with selling and purchasing, no assurance of liquidity, which could impact the price and ability to sell, and possible loss of principal invested. Further, an investment in a single security could mean lack of diversification and, consequently, higher risk. Potential investors are urged to consult a professional adviser regarding any economic, tax, legal or other consequences of trading any securities as described herein.

No Offer, Solicitation, Investment Advice or Recommendations

This release is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by tZERO or any of its affiliates, subsidiaries, officers, directors or employees. No reference to any specific security constitutes a recommendation to buy, sell, or hold that security or any other security. Nothing in this release shall be considered a solicitation or offer to buy or sell any security, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this release constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed in this release should not be taken as advice to buy, sell or hold any security. In preparing the information contained in this release, we have not taken into account the investment needs, objectives, and financial circumstances of any particular investor. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors. Any views expressed in this release by us were prepared based upon the information available to us at the time such views were written. Changed or additional information could cause such views to change. All information is subject to possible corrections. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.

Forward-Looking Statements

This release contains forward-looking statements. In addition, from time to time, tZERO, its subsidiaries, or its representatives may make forward-looking statements orally or in writing. These forward-looking statements are based on expectations and projections about future events, which are derived from currently available information. Such forward-looking statements relate to future events or future performance, including financial performance and projections; growth in revenue and earnings; and business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including, without limitation: the ability of tZERO and its subsidiaries to change the direction; tZERO’s ability to keep pace with new technology and changing market needs; and competition. These and other factors may cause actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this release and other statements made from time to time by tZERO, its subsidiaries or their respective representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions. tZERO, its subsidiaries, and its representatives are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this release and other statements made from time to time by tZERO, its subsidiaries or its representatives might not occur.

About XY Labs

XY Labs is a technology company based in California with a mission to create software and location-data-driven devices to build a global data network focused on people’s Dataist relationship to the physical world. XY Labs’ products include the COIN app, and the XYO network. With over 5 million nodes brought online for the XYO network, users worldwide can participate in the network and even get monetarily rewarded for doing so.

About tZERO

tZERO Group, Inc. (tZERO) and its broker-dealer subsidiaries provide an innovative liquidity platform for private companies and assets. We offer institutional-grade solutions for issuers looking to digitize their capital table through blockchain technology, and trade on a regulated alternative trading system. tZERO, through its broker-dealer subsidiaries, democratizes access to private assets by providing a simple, automated, and efficient trading venue to broker-dealers, institutions, and investors. tZERO is a portfolio company of Medici Ventures, L.P., a blockchain-focused fund. The general partner of that fund is an entity affiliated with Pelion Venture Partners. Overstock.com, Inc. (NASDAQ:OSTK) is a limited partner of Medici Ventures, L.P. and holds a direct minority interest in tZERO. For more information on tZERO, please visit https://www.tzero.com/.

tZERO is not a registered broker-dealer, funding portal, underwriter, investment bank, investment adviser or investment manager, and is not providing brokerage, investment banking or underwriting services, recommendations or investment advice to any person, and does not provide any brokerage services. tZERO takes no part in the negotiation or execution of secondary market transactions for the purchase or sale of securities and at no time has possession of investor funds or securities in connection with such transactions.

About tZERO ATS

tZERO ATS, LLC is a broker-dealer registered with the SEC and a member of FINRA and SIPC. More information about tZERO ATS may be found at https://brokercheck.finra.org/. Digital securities that trade on tZERO ATS are conventional uncertificated securities. Ownership of such securities is reflected on the traditional books and records of regulated market participants. The term “digital” or “digitization” refers to the blockchain technology elements of a digitally enhanced security that are intended to enhance investor experience through added transparency.

About tZERO Markets

tZERO Markets, LLC is a broker-dealer registered with the SEC and a member of FINRA and SIPC. More information about tZERO Markets may be found at https://brokercheck.finra.org/. Digital securities available on tZERO Markets’ platform are conventional uncertificated securities. Ownership of such securities is reflected on the traditional books and records of regulated market participants. The term “digital” or “digitization” refers to the blockchain technology elements of a digitally enhanced security that are intended to enhance investor experience through added transparency.

About Vertalo

Inspired by challenges encountered during their own March 2018 STO, Vertalo is an SEC-registered Digital Transfer Agent founded to map the gaps between primary and secondary trading of digital securities offerings. As the ‘Operating System for Digital Assets’, Vertalo is focused on connecting and enabling the digital asset economy, providing an industry-leading cap table and investor onboarding solution that facilitates direct ownership and direct listing of any private asset. In addition to offering direct issuance services to private companies, Vertalo also offers white-label, licensed, and platform/API services to RIAs, broker-dealers, and investment banks. A subsidiary of SeriesX, Vertalo is headquartered in Austin, TX and additional key personnel in New York City. Learn more about SeriesX and Vertalo at www.vertalo.com.

Contacts

XY Labs
Sarah Krieger, +1-724-961-6179

xylabs@wachsman.com

tZERO
Alexandra Sotiropoulos, +1-347-293-1416

asotiropoulos@tzero.com

Vertalo
Katie Campisano, +1-908-247-8678

katie@kamprelations.com