In order to issue securities on Eqvista, equity classes must be created. When you first create your company profile, there is already an equity class for “Founders” since they are the first ones who need the shares for the process to start. At least one equity class is needed in order to issue warrants or options.
Here’s how you can delete an equity class on Eqvista.
Step 1: After creating a company profile on Eqvista, you will see your company’s dashboard. Let us start by deleting the shareholder’s issuance and then the equity class as an example. From here, click on “Shareholders” and then on the Founder’s name.
Note: An equity class cannot be deleted without deleting all the share issuances from that equity class.
When you click on the shareholder name, you will see an overview of that shareholder. It will look like this:
Step 2: Click on the certificate number, and you will see the full issuance details. From here, click on “Actions” and then on “Delete grant” to delete the issuance.
Step 3: With this, a warning will appear as shown below:
Click on “Confirm and delete” to delete it.
Step 4: Once you do this, it will be deleted and you will reach the company’s dashboard. From here, click on “Securities” and then on “Equities”.
You will be directed to the “Equities” page.
Note: As you can see, there are other options available under the “Securities” menu on the left side including Equities. When you remove the equity class and there is no equity class at all, you will not be able to see the other options including the convertible instruments, warrants, and options.
To be able to see them, click on the Equity class – Founders. The information will show up on the right side. Click on “Actions” and then “Delete Security” to delete the equity class.
Step 5: When you do this, a warning will show up. Click on the “Delete security” button to confirm the process of deleting the equity class.
Step 6: When you do this, go back to the dashboard of the company. And then click on “Securities” again on the left side menu.
As you can see above, you will not be able to see the other options to issue. This means that you need to have at least one equity class for you to be able to issue any other kind of security in the company.
And using this, you now know how it works. If you, by mistake, deleted all the equity classes and want to issue a convertible note, remember that you need to first create an equity class to do that. To know more, check out the other support articles here!