Exchange & Conversion Transactions

Enhance equity management by efficiently reclassifying holdings to ensure accurate capital structures and legal compliance.

Overview

It is best to learn how to exchange or convert one share class to another within an Entity to get the best out of Athennian. While the workflows are similar, Athennian provides distinct transaction types—Exchange and Conversion—to ensure accurate record-keeping. These transactions update Holdings, Ledgers, and Certificates accordingly.

Availability: All Customers

Exchange Share Classes

Follow these steps to move shares from one class to another using the Exchange transaction type:

1. Navigate to the Entity undergoing the exchange

2. Navigate to the Securities > Ownership tab

3. In the Transactions tab, click the blue + New button in the top right-hand corner

4. Select the Exchange/Coversion transaction type from the list in the New Transaction modal

5. In the Exchange Details tab:

   • From the Select Type dropdown, choose Exchange

   • Enter the mandatory Transaction Date* and Resolution Date

6. Check Blank Transaction Date or Blank Resolution Date if dates are not yet finalized to ensure underlines appear in generated Documents

7. Open the From Details tab and enter:

   • Number of Shares*

   • Price Per Share*

   • Select the applicable holding using Select Holding.

8.  Open the To Details tab and enter:

   • Number of Shares* to be received

   • Price Per Share*

9.  Proceed to the Class Selection tab and:

   • Select a class to exchange within the same Entity

   • Select a class to exchange to another Entity

10. Select the Certificates affected by the exchange when prompted

11. Check the box for the specific Certificate and enter the amount to be exchanged

12. Click the Add to Existing checkbox if the shares should be added to an existing Certificate

13. Navigate to the Certificate Issuance tab and enter:

    • Sort Order

    • Ledger #

    • Certificate Code

    • Optionally check Uncertificated Shares or Lien/Encumbrance

14. Navigate to the Preview tab to review all data

15. Click Create to finalise the exchange transaction

Convert Share Classes

Follow these steps to reclassify holdings using the Conversion transaction type:

1. Navigate to the Entity undergoing the conversion

2. Navigate to the Securities > Ownership tab

3. In the Transactions tab, click the blue + New button in the top right-hand corner

4. Select the Exchange/Coversion transaction type from the list in the New Transaction modal

5. In the Details tab, fill in the mandatory Transaction Date* and Resolution Date

6. Check Blank Transaction Date or Blank Resolution Date if dates are not yet finalized to ensure underlines appear in generated Documents

7. Open the From Details tab and enter:

   1. Number of Shares*

   2. Price Per Share*

   3. Select the applicable holding using Select Holding.

8.  Open the To Details tab and enter:

   1. Number of Shares* to be received

   2. Price Per Share*

9.  Proceed to the Class Selection tab and:

   1. Select a class to exchange within the same Entity

   2. Select a class to exchange to another Entity

10. Check the box for the specific Certificate and enter the amount to be exchanged

11. Click the Add to Existing checkbox if the shares should be added to an existing Certificate

12. Navigate to the Certificate Issuance tab and enter:

    1. Sort Order

    2. Ledger #

    3. Certificate Code

    4. Optionally check Uncertificated Shares or Lien/Encumbrance

13. Check Uncertificated Shares or Lien/Encumbrance if applicable

14. Navigate to the Preview tab to review all data

15. Click Create to finalise the conversion transaction

Manage Conversions or Exchanges to Multiple Classes

Athennian supports the ability to convert or exchange shares from one class into multiple classes (e.g., 1 Common Share converts into 1 Class A Preferred Share and 1 Class B Preferred Share).

1. Execute two separate Conversion or Exchange transactions for each Shareholder

2. Split the original shares proportionally (e.g., the first transaction converts 0.5 Common Shares into 1 Class A Preferred, and the second converts the remaining 0.5 Common Shares into 1 Class B Preferred)

3. Leave notes on the Transaction records or Certificate records to indicate that In the Exchange Details tab:

4. From the Select Type dropdown, choose Exchange.

5. Enter the mandatory Transaction Date* and Resolution Date. The transactions are linked

Video Instructions: