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 “Option Pool”. 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 1”.
Step 2: On this page, you will see the number of shares issued under this option pool. In this case, we have just one, as “OP 1”.
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 “Convert to stock”.
Step 4: After you have done this, a pop-up window will appear. Here, you will have to choose if it is a full or partial conversion. The exercise price will automatically be used for the conversion to shares. In this case, we selected the full conversion option and gave a new share name. Once done, click on “Save”.
Note: In case you want to issue or modify more option grants, checkout the support article here.
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 CS-1111.
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 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!
