FTW Token SEX #01: Whitelist0x Launches Investor Relations Solutions for Security Token Issuers.

Welcome to the very 1st edition of the FTW Token SEX Series. A Series of blog posts by the Whitelist0x Team, well … inspired by weird tickers in the blockchain fundraising sphere. The year 2016, 2017, and 2018 tend to be those memorable years a group of folks who got bored in front of their PCs would just come — up with anything 3 — letter — word a.k.a. ticker, add phrases such as … the first in the world, decentralized, the blockchain, disruption, change the world, unbank the bank, crypto conferences a.k.a. music concerts, partnerships, vroom vroom vroom … Lamborghini … and then call it a project.

The current market ‘full of bad actors’ is not regulated. Welcome, Security Tokens! Yo! Hold on … the Team @ Whitelist0x does this in a different way.

Whitelist0x offers an absolute solution through a comprehensive suite of services tailored to satisfy each issuer’s specific needs. This enables every security token issuer to benefit from the Company’s extensive investor relations, equity market, financial disclosures, analytical proficiency, and a wide network of contacts of investors.

Unlike other security token platforms that only provide the technologies that enable issuers to create and issue security tokens, the Whitelist0x Investor Relations Solutions comes with an Equity Studio that also allows issuers to draft various disclosure and offering documents such as the Offering Memorandum, Subscription Agreement, Investor Verification Letter, LLC Operating Agreement, Attorney Opinion Letter, Offering Prospectus, filing with the SEC and other securities regulators from various jurisdictions to enable an issuer to conduct a public offering with international investors.

“At Whitelist0x, we do all the boring documentation and filing works for our issuers. From drafting custom offering documents to the filing, security token issuers can count on us, bigly.” Said Banjo, Whitelist0x’s Chief Product Officer.

The Whitelist0x Investor Relations Solutions [ Equity Studio ] will not only allow security token issuers to launch and issue their security tokens, but also will enable them to be able to launch extensive public relations, integrated marketing, and investor relations campaigns. Also, issuers will be able to reach, acquire and retain investors using various built-in tools such as investor leads, targeted circuits, and virtual events.

“Smart contracts can’t tell you where your investors are dining and hanging out. But extensive public relations, integrated marketing, and investor relations campaigns can. That’s where Whitelist0x got you covered.” Said Laja, Whitelist0x’s Chief Technical Officer.

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.

2 Regulatory Filings for Security Token Issuers Targeting International Retail Investors.

Many statutes require businesses, other organizations, and individuals to file certain forms and produce documents as a prerequisite for certain acts. The Securities Act, for example, requires registration of many types of public and private offers to sell or buy securities. Whitelist0x helps security token issuers with a number of filings with securities regulators such as the SEC in the U.S. and other securities regulators from various jurisdictions.

Public Filing.

If an issuer is looking forward to having a public offering, then such issuer might want to file with other securities regulators from various jurisdictions instead of the SEC because of the streamlined process and affordability. While filing an Offering Memorandum ‘not prospectus’ with the SEC only allows security token issuers to offer their security tokens privately to accredited U.S. investors, filing with other securities regulators from various jurisdictions allows issuers to take their offering to the public excluding the U.S. and OFAC sanctioned countries.

Whitelist0x takes the hustle and bustle from issuers by helping them draft their Offering Memorandum [ OM ] and file it with the SEC; the US securities regulators and also drafting their Prospectus and filing it with other securities regulators from various jurisdictions. This allows issuers to target private and accredited investors in the U.S. and international investors from across the globe excluding the below countries.

Whitelist0x is currently not serving issuers and investors from the Office of Foreign Assets Control [ OFAC ] countries. This list of sanctioned countries [ as of the time writing ] includes the Balkans, Belarus, Burma, Cote D’Ivoire [ Ivory Coast ], Cuba, Democratic Republic of Congo, Iran, Iraq, Liberia, North Korea, Sudan, Syria, and Zimbabwe. The list is being updated periodically and the most recent version can be found here.

Private Filing.

The primary purpose of the Electronic Data Gathering, Analysis, and Retrieval [ EDGAR ] is to increase the efficiency and fairness of the securities market by accelerating the receipt, acceptance, dissemination, and analysis of time-sensitive corporate information filed with the Securities and Exchange Commission [ SEC ]. The EDGAR filing is one of the legal and compliance framework provided by Whitelist0x. The secondary purpose of EDGAR is to provide transparency in the marketplace by making documents that have been filed quickly available to investors over the Internet.

The team at Whitelist0x helps security token issuers file the Form D with the Securities and Exchange Commission [ SEC ] that allows them under a Regulation D exemption or Section 4 [ 6 ] exemption to offer security tokens a.k.a. shares to finance their businesses without going through the IPO process and selling stock to the public.

The Blue Sky Laws are state regulations established as safeguards for investors against securities fraud. The laws, which may vary by state, typically require security token issuers to register their offerings and provide financial details. This allows investors to base their judgments on verifiable information. Whitelist0x helps in the preparation of these filings for all U.S. States. Depending on the chosen package, an issuer could choose to sell their shares to up — to 10 states or all the 50 states in the U.S.

How Security Token Issuers Can Build Investor Whitelists From the Whitelist0x Investor Database.

Whitelist0x enables security token issuers to customize a targeted whitelist of investors for their offering by additional selects such as income, age, marital, and homeowner status delivering their next best prospects.

Whether an issuer is looking forward to reaching young adults that are just starting to invest or seniors who have been investing in financial securities for years, they can trust the Whitelist0x Investor Database to show them the right path to increase investment contributions for their security token offering.

The Whitelist0x Investor Database combines a wide range of sources to deliver the most accurate whitelist of investors from across the globe. Most of the names on the whitelist are compiled from the Company’s Interest Submission Form used to onboard investors. The team then enhances the data with demographic and lifestyle information from its database.

“We are trying our best to control the atmosphere by not allowing people to become email marketing platforms overnight. Thus, we do not have any accredited investors list for sale. Although we do give our issuers the ability to customize their whitelist using our data, such whitelist can only be used on our platform using either our IRM or CRM to create email and text campaigns. Issuers cannot export a whitelist created on our platform.” Said Laja.

Accredited Investors.

Under the Regulation D Exemption, Rule 506 [ C ] is by far the most widely used exemption for raising capital today. The primary reason is because security token offerings that fall under this Rule are allowed to do general solicitation, which means an issuer can advertise its offering, list it on their website, use a security token platform such as Whitelist0x, and/or use social media, email, seminars, radio, TV, print, and any other means to market their offering.

However, all investors in this scenario must be accredited and there are enhanced requirements for qualifying investors. There is no limit to the amount that can be raised.

With Whitelist0x, security token issuers can acquire accredited investors who are individuals and institutions that meet certain requirements for the purpose of purchasing securities such as security tokens that are not offered to the general public. Perhaps an issuer wants to raise funds privately and wouldn’t want to register but file with any securities regulators such as the SEC, Whitelist0x has got a robust database of accredited investors issuers can utilize.

Institutional Investors.

Another thing is that, issuers can as well utilize the Whitelist0x Investor Database to get their security token offering in front of institutional investors, the big guys on the block — the elephants which include pension funds, mutual funds, money managers, insurance companies, investment banks, commercial trusts, endowment funds, hedge funds, and some hedge fund investors.

Individual Investors.

Security token issuers can leverage the Whitelist0x Investor Database to also reach more than 14.4m non — institutional or individual investors [ accredited and non — accredited ]. These are pretty much everyone a.k.a. retail investors who buy and sell security tokens through security token exchanges also known as the secondary market.

These are the people or organizations that manage their own money, usually to plan for retirement or to save for a large purchase. This Investor Database is more ideal for issuers going for the Rule 506 [ B ] which allows for a private offering only to investors with whom the issuer has a pre-existing relationship. Up to a maximum of 35 investors may be unaccredited, but audited financials would be required if there are any non — accredited investors. There is no limit to the amount that can be raised.

How Security Token Issuers Can Acquire Accredited and Retail Investors Using These Targeted Circuits.

Whitelist0x provides simultaneous distribution of news releases to news media and financial markets to maximize brand exposure, improve stakeholder engagement, gain visibility within investment communities, and meet financial disclosure/compliance requirements. The one-stop service offers efficient processes and timely turnaround.

Financial Circuits.

Whitelist0x writes and syndicates an issuer’s editorials to its media partners with financial interests. The Company publishes its issuer’s editorials on media outlets such as The Economist, Financial Times, The Australian Financial Review, Hong Kong Economic Times, Financial News, and much more.

Cryptocurrency Circuits.

Crafting and pitching security token offering press releases to cryptocurrency editors and media outlets is what the team at Whitelist0x is good at. The Company crafts its issuer’s press releases and sends them over to its media partners with cryptocurrency interests. The cool thing is that Whitelist0x doesn’t only pitch these releases, but also writes and syndicates them to media outlets such as Cointelegraph, Coindesk, CCN, Bitcoinist, Coinpage, and much more. So, coverage is guaranteed in some outlets.

Investment Circuits.

Whitelist0x also writes editorials to communicate issuer’s offering with investors through investment and personal finance media outlets such as the The Penny Hoarder, NerdWallet, A Wealth of Common Sense, Two Cents, The Simple Dollar, and much more.

Whitelist0x Launches Virtual Events Platform for Security Token Issuers.

A virtual event is here to stay. It is an ideal way for issuing companies to improve their offerings notoriety on predefined geographical locations without having to displace the participants for their conferences, demonstrations, roadshows, shareholders meetings, or even workshops and more.

Shareholders Meetings.

See the Whitelist0x virtual shareholders meetings like an earnings call, but it also authenticates shareholders upon log — in, and enables them to vote and ask questions during the meeting. This offers security token issuers more meeting options while eliminating the need to travel or organize costly physical meetings. It also allows issuers to manage shareholder meetings more effectively, while simultaneously demonstrating transparency and strengthening shareholder relationships.

Investor Roadshows.

Virtual investor roadshows allow security token issuers to share detailed presentations with interested investors. This offers experienced and well — educated investors free and direct access to information about small businesses and private companies going public, companies with secondary offerings, and public companies proactively communicating their story to serious investors.

Virtual Conferences.

The Whitelist0x virtual conferences solutions are not only an amazing marketing tool for security token issuers but also a great networking and learning experience for investors attending them. They are actually cost-effective, fun and engaging, and are environmentally friendly.

With the Whitelist0x virtual events, issuing companies can benefit from the below:

Easy and cost-effective for issuers and investors.

The main cost associated with virtual events such as shareholders meetings, investor roadshows, virtual conferences, and so on is that of producing the content for the conference and delivering such content in an engaging and interactive way. Issuers can create unlimited summits, which in turn will allow them to focus on the content. Audiences who are potential investors from around the globe could easily join a summit at no cost.

Anywhere, anytime, anyone.

Investors can attend virtual events from anywhere in the world, and if they can’t make the live event, they can still benefit from the VOD content later. All an investor need in order to attend is a connected device and decent internet connection.

Networking made easy.

Investors and attendees of a physical conference often need to scour exhibition rooms and corridors searching for name tags and tracking down industry leaders with whom they want to speak. With a virtual event, these physical barriers are stripped away. Attendees have immediate access to fellow attendees, as well as speakers and exhibitors, with just a few clicks of the mouse.

Accelerates pipeline deals.

Feedback from well — known virtual roadshows has clearly shown that investors that were deliberating investing in offerings found the virtual events extremely helpful and accelerated their decision to close the deal. Learning from the sessions, and having access to their peers, resulting in a faster decision.

Valuable analytics.

Virtual events offer analytics that cannot be typically gathered accurately in a physical event. Issuing companies can see for example which sessions attendees and investors watched, which virtual booths [ if enabled ] they visited, what resources they downloaded from booths, and with whom they spoke.

Environmentally friendly.

“A virtual event does not involve travel like cryptocurrency concerts,” as Laja said below. Additionally, all collateral [ brochures, data — sheets, offering memorandum, financial disclosures, and giveaways ] are virtual, hence avoiding all printed material in conferences that anyhow gets trashed later on.

“We see this in a scenario where Jake who is just getting into investing in security token offerings only has a plan to start — off with $5,000 with an issuer. Imagine how on earth Jake would be able to meet his investment goal if such issuing company is holding a physical investor roadshow in a country or city that’d cost him more than $3,500 to fly and travel to. The bottom line is that, at Whitelist0x, we do not think investor roadshows should be seen as musical concerts because that’s what most cryptocurrency conferences are turning into these days, unfortunately.” Said Laja.

Follow Whitelist0x on LinkedIn and Twitter. Become a Reseller, Affiliate, or Channel Partner. Join Whitelist0x as an Issuer or Investor. Send an email or chat live with the team on Telegram.

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.