Secondary Transactions – Repurchase All Shares

One of the important secondary transactions is a share repurchase where a company buys its shares from the shareholders.

Here are the steps to follow:

Step 1: Log into your Eqvista account and select your company account. 

On the dashboard, click on “Securities” on the left-hand side to get a drop-down menu. Then select “Equities”. 

Step 2: Once you select, you will be redirected to the following page. 

Note: On this page, click on “Create New Class” to create an equity class and if you have created one, you can issue shares and implement a vesting schedule. 

Then, click the equity class created, a panel will appear showing the details of those who have been issued shares from this class.  

In this case, we will click “Series B” and select the grant “SB-007”.

Step 3: You will be redirected to the grant details page below.

Here, click on “Actions” and then from the drop-down menu, click on “Repurchase Shares”.

Step 4: By doing this, a new window will appear. The first step is deciding whether it will be a Partial repurchase or Repurchase all shares.

Note: You can also partially repurchase shares by clicking “Partial repurchase”. To learn how to partially repurchase shares, check out the support article!

In this case, we selected “Repurchase all shares”. The price per share and repurchase date will be automatically filled.  

If the repurchase date is not today and the price per share is not the same as the initial share grant, then you can edit that as well. As you edit the details, the right-side panel gets updated.

Once you have added all the details, click on “Submit Repurchase”.

Step 5: Then, you will be redirected to the equity class page where the grant will be removed.

Step 6: The record of the repurchased grant can be seen by clicking “Cap Table” on the left-hand side to get a drop-down menu. Then, click on “Secondary Transactions” and you will see all the transactions – Exercises, Transfers, Note conversions, Repurchases, and Cancellations. 

On this page, click on “Repurchases” to check if the grant is repurchased.

Note: Similarly, you can also repurchase issued options and warrants.

To know more about Eqvista’s processes, check out our support articles and knowledge base. For further queries, get in touch with us!