Streamline complex corporate reorganizations and rollovers by exchanging holdings into multiple share/unit classes within a single transaction record
Overview
This feature allows users to initiate an Exchange transaction from a single source holding and distribute the value across multiple share/unit classes, either within the same Entity or into a different Entity. This functionality ensures accurate Cap Tables and transaction histories for Section 86 exchanges and other rollover activities without requiring manual duplicate entries.
Availability: All customers.
Initiate the Exchange Transaction
Navigate to the Entities module and select the specific Entity where the source shares/units are held
Select the Ownership section from the left-hand navigation menu
Click the New button in the top right corner
Select Exchange from the list of transaction types
Select the specific source Holding or certificate number being exchanged
Enter the number of shares/units to be exchanged in the Amount field
Select the Price Per Share/Unit for the source holding
Choose whether to leave the remaining balance on the existing certificate or issue a new one by toggling the Balance options
Add Multiple Receiving Share/Unit Classes
Navigate to the To Details section within the Exchange workflow
Select the receiving Entity (this can be the current Entity or a different one)
Select the first receiving Share/Unit Class from the dropdown menu
Enter the number of shares/units to be issued in the Amount field for this class
Enter the Price Per Share/Unit for the new issuance
Select an existing Holder or click Create New to assign the shares/units
Click Add another class to include an additional receiving class in the same transaction
Repeat the selection process for the second Share/Unit Class, entering the specific Amount, Price Per Share/Unit, and Holder information
Review the distribution of shares/units across all selected classes to ensure accuracy
Finalize the Transaction
Verify that the total shares/units exchanged from the source align with the intended distribution in the receiving classes
Review all transaction dates and certificate settings
Click the Create button to process the Exchange
Navigate to the receiving Entity and view the Securities > Ownership section to verify the new issuances
Open the newly created Holdings to view the Transaction Context, which displays the original Entity, Share/Unit Class, and Amount Disposed