All three types (SAFE, Convertible and Custom) of Notes can be converted to shares. The conversion process issues new shares to the noteholder and automatically reports the transaction to ASIC.
To convert a note follow the steps below:
Click on the Register link in the left sidebar.
On the Register page, click on the Notes tab in the navigation bar at the top of the page (Image 1).
Image 1 - Notes tab on Register Page
3. On the Notes Register page, find and select the investor. (Image 2).
Image 2 - Notes Register
4. On the Investor's holding page, select the notes issuance you want to convert to
shares in the Notes panel (Image 3).
Image 3 - Investor holdings page
5. On the Note details page, you will see the details of the note transaction. In the Manage Note panel, select the 'Convert to shares' in the Exit type drop down menu.
Image 4 - Manage a Note Panel
6. Edit the total paid amount if required. The total paid amount entered can not be less than the amount invested.
7. Select the share class the note is being converted to. All share classes in the capital structure will automatically appear in the drop down menu.
For Convertible notes the share class is automatically selected and not editable because the share class was specified when the note was created.
Image 5 - Share class dropdown menu
8. Enter the number of shares.
9. Select the date of Conversion. Please note that the earliest date of conversion is the date of issuance of the notes and the latest date of conversion is the current date. (ASIC does not allow shares to be issued for a future date.)
10. Click on the Convert button (Image 6).
Image 6 - Convert a Note
11. In the Confirm conversion window, review the conversion details. If the transaction details are correct, click 'Confirm' (Image 7).
Image 7 - Confirm conversion window
12. A window will be displayed confirming the shares have been issued (Image 8).
Image 8 - Note Converted window
When you click 'Close' you will see details including of the conversion in the Conversion panel. The conversion panel outlines (Image 9):
The date of the conversion
Share class
Number of Shares issued
Total paid amount
Image 9 - Note conversion panel
The note holder will now appear as an investor on the shares register. The issued shares will be displayed as a share transaction on the investor holding page, and the status of the initial notes issuance will be updated to 'Converted' (Image 10).
Image 10 - Investor holdings after notes have been converted
