The "Record Common Stock Sale" Workflow

The Record Common Stock Sale workflow is designed for recording purchases of common stock. Since these financings are less involved than normal Equity Financings (which create new stock classes), the Equity Financing workflow is too complex and doesn't always apply for these purchases. As such, the Record Common Stock Sale workflow functions as a simpler process which allows clients to upload these unique financings.

It's important to note that this workflow is ONLY for recording Common Stock purchases. If the purchase is happening as part of a broader round of funding which includes sales of preferred stock, you can use the Equity Financing Workflow.

Upload Documents

During this step, you will be able to upload the Stock Purchase Agreement, and record the initial closing date. 

Select Investors

At this step, you will use the "+ Add Investor" button to list out all of the investors who purchased common stock in this financing. You'll be listing the investor's name, the amount invested, and the number of shares purchased. 

Provide Certificates

For each purchase, you'll be able to either upload, defer, or generate a stock certificate. 

Upload Board/Stockholder Approval

For the board approval, you'll be able to upload or defer the document and record the effective date. The same is true of the stockholder approval; however, the stockholder approval can also be waived.

Checkpoint

Review the documents carefully. When you are satisfied, click "Continue." Once you select "Continue," the workflow will be complete.

Charter Amendments

Sometimes, a round of financing requires a charter amendment. Clients can still process the financing if it breaches the number of authorized shares available to the company; however, we encourage users to make an amendment to their charter first if the sale surpasses the authorized share limit. A constraints check within the workflow brings this to the client's attention. 

Screenshots are for illustrative purposes only.

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