Secondary Transactions – Exercising Options into Certificates
Step 1: Log into your Eqvista account and select your company profile. You will then reach the company’s dashboard. From here, click on “Securities” from the left-hand side and click on “Options”. You will be redirected to the following page.
Here you will see all the options available. Click on the option that you want to convert to stock. In this case, we will click on “Option Pool 2”.
Step 2: On this page, you will see the number of shares issued under this option pool. In this case, we have two.
Select the option that you want to exercise here. In this case, we selected “OP2-001”.
Step 3: Once you click on this, you will be redirected to the next page where you can see all the details of the option issued.
From here, click on the button that stated “Actions” on the top right-hand side of the page. A mini drop-down menu will appear, and select “Exercise to equity”.
Step 4: After you have done this, a new panel will appear. The first thing that you need to do is choose if it is a partial or full conversion. The exercise price will automatically be used for the conversion to shares. In this case, we selected the full conversion option and selected the equity class from where the shares would be given. Once done, click on “Submit Exercise”.
Step 5: With this done, you will be directed to the page where the conversion has been processed. This means that the option has been exercised into a certificate, namely “Exer from OP2-001”.
But to see the effect of this on the secondary transaction part of the cap table, you will have to follow the next step.
Step 6: To see the secondary transactions table, click on “Cap table” and from the drop-down menu click on “Secondary transactions”. With this, you will reach the following page.
From here you can see under the tab “Exercises” that the conversion has been posted to the list and all the details updated as well.
And like this, you can easily exercise options into shares. To know more about how to use the Eqvista application, check out the support articles here!
