OFA Group Secures \$15 Million Tokenization Deal for \$1 Billion Long Island City Mega-Development

Key Highlights for Investors

• OFA Group, Inc. (NASDAQ: OFAL) has executed a landmark \$15 million Real World Asset (RWA) tokenization service agreement with MD Queens Development LLC for a major mixed-use property project in Long Island City, New York.
• The Long Island City development is estimated to have a stabilized value of approximately \$1 billion upon completion. The project involves transforming a warehouse site into a premier residential and commercial tower.
• OFA’s proprietary Hearth RWA Tokenization Platform will supply end-to-end blockchain-based tokenization infrastructure for the project.
• The \$15 million technology fee is contractually secured, not dependent on capital raising, token sales, or investment performance. Payment is tied to specific project milestones and the company has already received the first installment.
• OFA’s role is strictly as a technology provider; it does not act as an issuer, broker-dealer, placement agent, investment adviser, or exchange operator, and does not engage in fundraising or custody of funds/tokens.
• This agreement enhances OFA’s near-term revenue visibility and showcases the company’s ability to monetize its RWA infrastructure with large institutional clients.
• The project’s tokenization will occur at the pre-development stage, enabling innovative early-stage capital structuring via blockchain.
• Digital tokens will represent interests in a special purpose vehicle (SPV), not direct ownership of the underlying real estate, helping to address regulatory and compliance considerations.
• The deal positions OFA at the cutting edge of blockchain adoption in real estate, signaling increasing institutional acceptance of tokenized real-world assets.

Details of the Agreement

• Fee Structure: The \$15 million fee is guaranteed by a signed contract and paid in installments as OFA deploys its platform and integrates smart contracts for the project. Importantly, this fee is not contingent on project fundraising success or investment results, mitigating financial risk for OFA.
• Scope of Services: Via the Hearth platform, OFA provides comprehensive technology services, including:
  • Design and creation of digital tokens
  • Development and deployment of smart contracts
  • Digital asset registry infrastructure
  • Integration of project documentation
  • Compliance-enabled technical features, such as transfer restrictions and identity verification frameworks
• All compliance, offering structure, and investor-related activities are the responsibility of the client and its advisors, not OFA.
• OFA has already received the first payment under the agreement, providing immediate revenue impact.

Strategic Significance and Potential Shareholder Impact

• This agreement represents a significant milestone in OFA’s commercialization of its blockchain tokenization technology and validates its platform for institutional-scale real estate projects.
• The deal could substantially enhance OFA’s revenue and cash flow profile in the near term, and may drive investor sentiment given the size and institutional nature of the project.
• The project demonstrates the growing adoption of blockchain infrastructure in traditional real estate and may position OFA as a leader in this rapidly expanding market.
• The company’s strict focus on technology provision, without regulatory risk from securities issuance or fundraising, could be viewed positively by investors seeking lower operational risk exposure.

Management Commentary

“This agreement reflects continued progress in the adoption of blockchain infrastructure for real-world assets. We are pleased to support a project of this scale and to demonstrate how our Hearth platform can deliver secure, compliant, and scalable tokenization solutions for institutional-grade developments,” said Larry Wong, CEO of OFA Group.

About OFA Group

OFA Group, Inc. (NASDAQ: OFAL) is a technology-driven architecture, real estate, and digital asset infrastructure company operating at the intersection of AI, construction, and blockchain. The company’s Hearth platform enables non-custodial, compliant tokenization of real-world assets for institutional-grade projects.

Investor Relations Contact

• Email: [email protected]
• Website: www.ofacorp.com

Disclaimer

Disclaimer: This article contains forward-looking statements based on current expectations and projections about future events. Actual results may differ materially due to risks and uncertainties, including regulatory developments, project execution, and market conditions. This article does not constitute investment advice. Readers are encouraged to conduct their own research and consult with professional advisors before making investment decisions.

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