The workflow for exchanging and converting shares within an entity is the same.  In this article, we will go through the workflow for exchanging shares, as well as the workflow for converting shares for ease of reference.

Exchanging Shares

  1. Navigate to the entity that is exchanging shares;

  2. Navigate to the Securities > Shares tab;

  3. In the Transactions tab, select + New - a list of various transactions will appear;

  4. Select the Exchange transaction type from the list of transactions - a workflow will open up;

  5. In the Exchange from Details tab, fill in the Transaction Date and Resolution Date; if you do not yet have these dates, check off Blank Transaction Date/Blank Resolution Date and fill them in at a later time - note: if you check off Blank Transaction Date, underlines will appear in the documents when you generate them where the dates would have appeared;

  6. In the Amount to Exchange field, enter the amount of shares to be exchanged;

  7. Enter the fair market value price per share in the FMV price per share field, and fill in the other remaining fields as required;

  8. In the From section, select the shareholder whose shares are being exchanged;

  9. Once you make the shareholder selection, you will be prompted to select the certificates being affected by the exchange - check off the certificate and enter the amount to be exchanged;

  10. Next, either Select a Share Class to be Exchanged with [Shareholder] or Select a Share Class to Exchange to Another Entity;

  11. Depending on which option you choose in step 10, you will either have to select the share class from the current entity, or select the other entity issuing the shares as well as the category of shares being issued pursuant to the exchange;

  12. In the Exchange to Details tab, enter the amount of shares that the shares selected in Exchange from Details are being exchanged to;

  13. Enter the fair market value price per share in the FMV price per share field;

  14. In that same tab, select either Create new shareholding or Select from an existing shareholding to select the shareholder of the shares;

  15. Review the information entered in the Review tab, and then select Exchange;

  16. Navigate to the top of the Securities screen to select the share class that was exchanged;

  17. Select the exchange transaction set out in the share class that was being exchanged and change the status from Pending to Confirmed by opening the transaction and selecting the Confirm button at the bottom right of the transaction screen once open;

  18. Once complete, navigate again to the top of the Securities > Shares screen and move to the share class that the shares were exchanged for;

  19. Complete the same process as the previous confirmation of exchanged shares -
    select the exchange transaction set out and change the status from Pending to Confirmed by selecting the Confirm button at the bottom right of the transaction screen once open.

Converting Shares

  1. Navigate to the entity that is converting shares;

  2. Navigate to the Securities > Shares tab;

  3. In the Transactions tab, select + New - a list of various transactions will appear;

  4. Select the Conversion transaction type from the list of transactions - a workflow will open up;

  5. In the Conversion from Details tab, fill in the Transaction Date and Resolution Date; if you do not yet have these dates, check off Blank Transaction Date/Blank Resolution Date and fill them in at a later time - note: if you check off Blank Transaction Date, underlines will appear in the documents when you generate them where the dates would have appeared;

  6. In the Amount to convert field, enter the amount of shares to be converted;

  7. Enter the fair market value price per share in the FMV price per share field, and fill in the other remaining fields as required;

  8. In the From section, select the shareholder whose shares are being converted;

  9. Once you make the shareholder selection, you will be prompted to select the certificates being affected by the conversion - check off the certificate and enter the amount to be converted;

  10. Next, either Select a Share Class to convert within [Shareholder] or Select a Share Class to Convert to Another Entity;

  11. Depending on which option you choose in step 10, you will either have to select the share class from the current entity, or select the other entity issuing the shares as well as the category of shares being issued pursuant to the conversion;

  12. In the Conversion to Details tab, enter the amount of shares that the shares selected in Conversion from Details are being converted to;

  13. Enter the fair market value price per share in the FMV price per share field;

  14. In that same tab, select either Create new shareholding or Select from an existing shareholding to select the shareholder of the shares;

  15. Review the information entered in the Review tab, and then select Convert;

  16. Navigate to the top of the Securities screen to select the share class that was converted;

  17. Select the conversion transaction set out in the share class that was being converted and change the status from Pending to Confirmed by opening the transaction and selecting the Confirm button at the bottom right of the transaction screen once open;

  18. Once complete, navigate again to the top of the Securities > Shares screen and move to the share class that the shares were converted for;

  19. Complete the same process as the previous confirmation of converted shares -
    select the conversion transaction set out and change the status from Pending to Confirmed by selecting the Confirm button at the bottom right of the transaction screen once open.

Conversions or Exchanges to Multiple Classes

Athennian supports the ability to convert or exchange shares from one class into multiple (e.x., 1 Common Share converts into 1 Class A Preferred Share and 1 Class B Preferred Share). To execute this, you will need to run two seperate Conversion or Exchange transactions for each shareholder. Using the example above, the first transaction will convert or exchange 0.5 Common Shares into 1 Class A Preferred Share and the second transaction will convert or exchange 0.5 Common Shares into 1 Class B Preferred Share. You can leave notes on the transaction records or the certificate records to describe that the two transactions are connected to each other.

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