Tokenization for Shareholders

No. The decision to tokenize and trade your shares is entirely yours. But we encourage you to tokenize a portion of your shares into security tokens, so that you will not miss out on the opportunity to trade your tokens when the trading starts on INX.

In addition to enabling you to have liquidity in relation to your Casper Labs shares, by tokenizing and trading you will also help to make an active market in Casper Labs security tokens which will in turn bring positive exposure to Casper Labs, its reputation and its business offering.

The process is well underway. We engaged INX and have met all of their internal requirements for tokenization and listing of the security token. All corporate approvals for tokenization were passed at the recent general shareholders meeting. 

The next step is for our shareholders to tokenize a portion of their shares and to receive the security tokens in their INX accounts, so there are sufficient security tokens being offered for sale on the INX platform. 

In August, a global marketing campaign will be launched to inform the market about the availability of the Casper Labs security token on INX, which will help to generate demand and excitement for the security token and start of trading. 

We are targeting trading in the security token to commence in early September, once a sufficient amount of shares have been tokenized and received by our shareholders on the INX platform. 

Series A investors

As a Series A investor, you currently hold Preferred Shares. You will need to contact the Company to convert the Preferred Shares to Ordinary Shares (on a 1:1 basis) and tell us the number of shares that you want to tokenize. This corporate process takes around 30 days at a minimum, so we encourage you to contact us immediately at tokenization@casperlabs.io

Once your preferred shares have been converted into ordinary shares, then you will execute the Tokenization Agreement and Consent in the form provided by the Company by Docusign. You will also need to register on INX (using the same email that you used to sign the Tokenization Agreement and Consent) in order to whitelist your personal wallet and receive your security tokens through the INX platform. Go to https://one.inx.co/signup. 

In general, there are no limitations on the number of shares you can tokenize and trade, so long as you are not (and have not been for at least three months) an affiliate of the Company. Our Series A financing occurred four years ago, so the required holding periods should have already been met.

Once trading commences in September, you will be able to offer and trade your security tokens on the INX platform. 

Ordinary Shareholders

As a holder of ordinary shares, you are permitted to tokenize up to the greater of 10% of your shares or 10,000 shares. You must also not be (and have not been for at least three months) an affiliate of the Company and have held the shares for at least one year. Contact us immediately at tokenization@casperlabs.io to tell us you want to proceed. 

You will need to sign the Tokenization Agreement and Consent in the form provided by the Company by Docusign. You will also need to register on INX (using the same email as that used to sign the Tokenization Agreement and Consent) in order to whitelist your personal wallet and receive your security tokens through the INX platform. Go to https://one.inx.co/signup.

Once trading commences in September, you will be able to offer and trade security tokens on the INX platform. 

¹ An affiliate of an issuer is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such issuer.

Generally, no. Go to https://one.inx.co/signup, to register on INX. Apart from the sanctioned countries, there are a few additional countries where INX is not available.

Yes. INX is a FINRA Broker Dealer member and has its Alternative Trading System (“ATS”) registered with the SEC. The ATS is where the Casper Labs security tokens will be available for trading.

We cannot predict the trading price. Various factors will influence the trading price and its volatility, the foremost being the bid and offer prices set by buyers and sellers who will independently determine the price. Before offering their shares, sellers will take into account the price at which they originally purchased the shares and the price at which the last trade occurred, amongst other factors. 

It’s too early to say definitively. We want the trading of our security tokens to be highly successful and we are presently focused on executing that functionality as well as possible. We will continue to explore a future IPO, which generally has much more onerous business, legal and accounting prerequisites.

No. Tokenization converts shares into security tokens so they can trade and settle more efficiently on an alternative trading platform. In addition, the alternative trading platform can be accessed from interested buyers from all over the world, helping to potentially create an active market for the security token. Tokenization does not add new shares to the cap table, so there is no dilution. 

No. Existing shares are being tokenized into security tokens which can then be traded on the INX platform. When an active market for the security tokens develops, we will explore using the security tokens to raise additional capital.

A smart contract based on the Ethereum ERC-1404 standard will be launched to create a security token representing the Company’s ordinary shares. Once a shareholder has completed the Company procedures outlined above and registered on the INX platform, the security tokens will be delivered to the shareholder’s personal wallet (eg. Metamask) through the INX platform. Shareholders can either trade those tokens on the INX platform through their order book, or personally transfer the security tokens to any other wallet that has registered and whitelisted with INX. 

The security tokens, pursuant to Swiss law, will be subject to the Company’s Tokenization and Registration Regulations as published on the Company’s website. The security tokens will also remain subject to the Company’s drag-along right in the case of sale of the Company and to certain other provisions of the Company’s shareholders agreement.

INX is a sophisticated security token trading platform with all the typical functionalities you may find on other alternative trading systems, including issuing limit sell and buy orders. While you may fund your account with USDC, USD, USDT and ETH, all trading on the INX platform is executed and settled in USD. All proceeds of sales of security tokens, after deduction of the applicable INX commission, will be transferred to your INX account. 

This FAQ contains no promises or guarantees, and should not be interpreted to contain any promises, guarantees, or warranties, by the Company or any personnel thereof regarding the subject matter hereof. 

This FAQ contains certain forward-looking statements or information (collectively “forward-looking statements”) that relate to the Company’s current expectations of future events. In some cases, these forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “plan”, “seek”, “believe”, “potential”, “continue”, “is/are likely to” or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The Company has based these forward-looking statements on current projections about future events and trends that the Company believes are relevant to the matters described in this presentation.

Forward-looking statements are based on certain assumptions and analysis made by the Company and its personnel in light of experience and perception of historical trends, current conditions and expected future developments and other factors that the Company believes are appropriate, and all such statements are subject to risks and uncertainties. Although the forward-looking statements contained in this presentation are based upon what the Company believes are reasonable assumptions, there are risks, uncertainties, assumptions, and other factors which could cause actual results, performances, achievements and/or experiences to differ materially from the expectations expressed, implied, or perceived in forward-looking statements. Given such risks, recipients of this presentation are cautioned not to place undue reliance on these forward-looking statements.