How to convert shares from one share class to another

If you want to convert existing shares from one share class to a different share class, this article explains how.

To view a stakeholders summary of shares, click on Cap Table (under Ownership) and the arrow to the left of the stakeholders name. This will state how many shares they own and which class they belong to.

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Before shares can be converted, the share classes that you want the shares to convert to will need to be added on Capdesk (if not done already). To learn how to add a new share class, click here.

Once the share classes have been added, they will appear on the Classes page which can be found on the Shares tab (under Ownership). 

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Now to convert shares, proceed to Shares (under Ownership) -> Transactions -> Shares (Green Button) -> Convert Shares.

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Click on the existing stakeholder that you would like to convert the shares.  

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After the stakeholder has been chosen, the 'Share Class Conversion Details' page will appear. This is where you can decide how many shares you would like to convert from one share class to another and on which date this is to occur on. If the conversion occurs during a funding round then that round can also be attached. 

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If there is a price paid for the share conversion, this will have to be stated in the 'price per share'. If you do not wish to use the same currency as the share class for this price paid, simply untick the box and choose the correct currency from the dropdown list. If there is no price paid to the conversion then enter 0 as the price per share.

Any documents regarding the conversion can be added by click on Documents -> Add document. 

Once all the details have been inputted, this can either be saved as a draft or published.

Publish and Notify the shareholder is only an option if your Capdesk account is live.

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Once this is done, the conversion will be recorded in the list of share transactions.

If you would like to edit the conversion (share classes, quantity, date etc.), click on the action button (...) -> edit. You can only do this if you saved the conversion as drafts.

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Once you are happy with the share conversion, click on 'conversion' to view further details and to find any notes or documents that may have been attached.

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To view a summary of what the the share conversion has done to the total amount of shares a stakeholder owns, go back to the Cap Table (under Ownership) and click the arrow to the left of the stakeholders name. The screenshot below will show how the 20,000 share conversion has effected the first screenshot at the top of the page.

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If you need further assistance, you can reach out to us by submitting a support ticket here.