6 Disclosure Documents That Convert Security Token Offering to Initial Public Offering.
Whitelist0x partners and works with securities attorneys from various jurisdictions such as the United States and Germany to help security token issuers with their disclosure documentation such as the Offering Memorandum, Subscription Agreement, Investor Verification Letter, LLC Operating Agreement, Attorney Opinion Letter, Offering Prospectus, and so on.
Offering Memorandum.
For issuers that plan to raise funds from private and accredited investors from the U.S., well — drafted risk factors can help protect such issuers engaged in capital raising via the security token offering mechanism against liability under the broadly used antifraud provisions of the Securities Act in the United States. The team at Whitelist0x helps issuers draft their Offering Memorandum [ OM ] also known as Private Placement Memorandum [ PPM ] that states the objectives, risks, and terms involved with their security token offering.
Whitelist0x only provides this Document to issuers filing with the SEC. Otherwise, an Offering Prospectus is all that is needed and to be filed with both the U.S. [ SEC ] and other securities regulators from various jurisdictions.
Subscription Agreement.
Small businesses and private companies that plan to issue security tokens can utilize Subscription Agreement should they want to raise capital from private investors. Whitelist0x works with securities attorneys to assist its issuers and to ensure this is done by selling either shares or a part of their company’s ownership a.k.a. equities without needing to register with the SEC in the United States. Whitelist0x only provides this Document to issuers filing their PPMs with the SEC.
LLC Operating Agreement.
An LLC Operating Agreement is one of the legal documents Whitelist0x provides. This outlines the ownership and member duties of an issuing company. This agreement allows an issuer to set out the financial and working relations among business owners [ “members” ] and between members and managers. Whitelist0x only provides this Document to issuers filing their PPMs with the SEC.
Investor Verification Letter.
Under the securities laws of the United States, certain types of investments, such as generally solicited Reg D, Rule 506 [ C ] offerings, are only available to accredited investors. Whitelist0x leverages the use of Investor Verification Letter that helps in certifying that reasonable steps were taken to verify that the investor is an accredited investor within the prior three months and that it was actually determined that such investor is an accredited investor. Whitelist0x only provides this Document to issuers filing their PPMs with the SEC.
Attorney Opinion Letter.
Whitelist0x provides security token issuers with a well — drafted Attorney Opinion Letter, verifying that to the best of the knowledge of its securities attorneys, the issuer is in absolute compliance with securities laws of their chosen jurisdictions. Whitelist0x only provides this Document to issuers filing their PPMs with the SEC.
Offering Prospectus.
While memorandum is meant for issuers raising capital from private and accredited investors in the U.S., Offering Prospectus is required if an issuer plans to do a public offering and same rules apply to both the SEC and other securities regulators from various jurisdictions. A prospectus is a document which describes a ‘public’ offering of securities to potential investors. It includes a detailed description of the issuing company’s business and the offering the company would like to make to investors.
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Whitelist0x is what it is :: a Whitelisting Firm. That says it all. However, there’s more beyond the name. Whitelist0x focuses on helping small businesses go public to raise funds via the security token offering mechanism. Unlike similar security token platforms that only offer technical solutions, Whitelist0x enables private companies to launch extensive public relations, integrated marketing, and investor relations campaigns, draft various offering documents such as prospectus, file with securities regulators in the U.S. and various other jurisdictions, and then issue security tokens that represent shares and allow shareholders a stake in their company’s equity as well as a share in their profits in form of dividends, interests, and so on.
