DealMaker Shareholder Services is pleased to service the three most common types of bonus share structures. These structures are summarized below.
These are the most commonly used and most effective bonus share structures in the market. Other structures are not facilitated by DealMaker Shareholder Services as they can be overly complex to manage and can create misleading expectations for investors which leads to confusion and unhappy shareholders.
Structure One - Time Based Bonus Shares:
This is a bonus share structure based on time of investment.
For example, if an issuer is offering bonus shares to any investor who invests before January 1, 2024 and an investor funds their investment on December 31, 2023, that investor is eligible for bonus shares.
Important Notes
- The date which DealMaker Shareholder Services uses to determine eligibility must be based on Funding date.
- All dates on DealMaker.Tech platform are based on UTC timing.
- The issuer can have up to five tiers.
Structure Two - Amount Based Bonus Shares:
This is a bonus share structure based on investment amount.
For example, if an issuer is offering bonus shares to any investor who invests more than $5,000 USD and an investor completes an investment for $5,001 USD, they will be eligible to receive bonus shares.
Important Notes
- If an investor completes multiple investments, they will not receive the bonus share tier based on their sum investment.
- The issuer can have up to five tiers.
Structure Three - Combined Time and Amount Based Bonus Shares:
You can combine time and amount based bonus shares.
For example, an issuer can offer bonus shares to any investor who invests before January 1, 2024 and at the same time offer that any investor who funds their investment on December 31, 2023, is eligible for bonus shares.
For example, if an issuer is offering both time and amount based bonus shares:
- Any investor who completes their investment before January 1, 2024 is eligible to receive 10% bonus shares
- Any investor who invests more than $5,000 USD is eligible to receive 20% bonus shares.
Our system is able to combine the bonus shares such that the investor would receive 30% bonus shares. Alternatively, we are able to select for the greater of the two options such that the investor would receive 20% bonus shares (the amount based).
We can implement a maximum amount of bonus shares (percentage-based) that an investor can qualify for in the combined package so that publicly disclosed maximums can be satisfied.
The value of our system’s ability to correctly manage these incentive programs cannot be understated. These significantly impact the types of products you can offer to the market to drive investment value.