FAQ – Handling Restrictions on Transfer of Assets


Do you contact the company that issued my securities?

We typically reach out to issuers first via phone, email, or social media.  If we receive no response, we typically send a FedEx or certified mail to the company, thus documenting our good faith attempt to notify the company of the transaction.

Do you look at the legends involving transfer restrictions on my stock certificates?

Yes, we review the original stock certificate (or potentially other documentation) and make good faith efforts to follow the required transfer procedures.

I signed a ROFR, co-sale, or transfer restriction agreement. Do you want this?

Yes. Transfer restrictions are one element of our pricing analysis.  We will make a good faith attempt to contact the rights holders to inform them of this transaction.

What happens if the ROFR is triggered and the company I invested in insists on buying my stock?

As part of the Binding Asset Transfer Agreement, we will assume responsibility for working with the Issuer on ROFR and other restrictions on the securities.  Our intent is to move you out of the transaction as of the effective date of our purchase of your assets.

What if others have ROFR or co-sale rights?

Most commonly, the company does; and in most cases, the board can waive them.  If other investors have rights and you can provide detailed information on these rights and the investor’s contact information, we will make a good faith attempt to notify them of this transaction.

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