Exchange & Conversion Transactions

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 and 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 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. Select the Destination class to be exchanged with if within the same entity or to another entity and the share class.

6. In the From Details tab, enter the Number of Shares, price per share, and the shareholder whose shares are being exchanged

7. In the To Details tab, enter the number of shares to be exchanged, the price per share, and select either a new shareholding or select from an existing shareholding;

8. 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; Click on the "Add to Existing" checkbox if the shares being exchanged are to be added to an existing shareholder's certificate

9. Click on the Certificate tab to enter the sort order, Ledger #, and Certificate Code. Check off the uncertificated shares or Lien/Encumbrance checkbox if the shares being exchanged are uncertificated or have a Lien/Encumbrance

10. Navigate to the Review tab to look through all the information entered and click on the Draft button

Converting Shares

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

   5. In the 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. Select the Destination class to be converted with if within the same entity or to another entity and the share class.

   6. In the From Details tab, enter the Number of Shares, price per share, and the shareholder whose shares are being converted

   7. In the To Details tab, enter the number of shares to be converted, the price per share, and select either a new shareholding or select from an existing shareholding;

   8. 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; Click on the "Add to Existing" checkbox if the shares being converted are to be added to an existing shareholder's certificate

   9. Click on the Certificate tab to enter the sort order, Ledger #, and Certificate Code. Check off the uncertificated shares or Lien/Encumbrance checkbox if the shares being converted are uncertificated or have a Lien/Encumbrance

   10. Navigate to the Review tab to look through all the information entered and click on the Draft button

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.

Video Instructions: