Canadian oil financing firm Oleum Capital Inc is about to get its biggest cash ‎infusion yet, but this time part of the financing round will come from an initial coin offering ‎‎(ICO) instead of only regular investors‏.‏

Taking advantage of a rush towards investments based around selling ‎crypto tokens, the company plans to hold a hybrid ‎shares/ICO fundraising event, which will take place in mid-January, a senior ‎company executive told Reuters.‎

Alberta-based firm expects to raise $200 million from its ICO/shares ‎crowdsale through a process by which it sells tokens and traditional stocks ‎at the same value, initially priced at $1.‎

Although it’s far from certain yet that crypto investors will line up to throw ‎their money into a company that is focused on financing small energy firms, but ICOs, in ‎general, have spread in 2017, raising more than $3.6 billion for dozens of ‎startups.‎

Canada cashes in on cryptocurrency frenzy

Canada is emerging as a hub for blockchain-based investments amid a ‎virtuous circle of expertise and business, thanks in part to ‎an ecosystem that ‎have relevant capabilities to support start-ups and their innovations. In ‎addition, several companies tied to the crypto sector are set to list on ‎the country’s stock exchanges in the next year.‎

Nevertheless, Oleum opted to list on the Dutch Caribbean Securities ‎Exchange as Canadas’s securities regulators have recently voiced ‎concerns over investor frenzy ‎toward ICOs‏.‏

The CSA stated that earlier this year this new fundraising phenomenon should be ‎categorised as securities, at least in some cases. This implies that certain ‎ICOs/ITOs would now need to follow Canadian securities laws, which ‎requires assessing the economic realities of the offering to protect ‎participating investors.‎

Oleum’s‎ co-founder and Chief Innovation Officer Dave Bradley noted that his firm is barreling full steam ahead into the world of ICO ‎investing as the sector is currently facing challenges to access the ‎traditional financing vehicles. Because of low oil prices, and extended ‎uncertainty even after recent rebound, most capitalists remain wary ‎of them, which make their very line of work suddenly looks threatened.‎

‎ Bradley added: “The willingness that the Dutch Caribbean exchange has shown to work ‎with an ICO has been one of the main drivers. They really see the profound ‎changes the ICO funding model is going to bring. We’re filling a gap in the ‎market that banks and private equity are not funding right now. ICO ‎financing is just going crazy this year.”