Using Instant Conversion or a Seed Round to convert your SeedFAST / Convertible Loan Notes? Here's a step-by-step guide!
If you're looking to convert your SeedFAST or your SeedNOTE into equity for your investor we'll take you through this step by step on the platform. This guide will help you:
Add ‘Historical Debt’ to the Debt Table
Convert your SeedFAST/SeedNOTE using Instant Conversion
Convert your SeedFAST/SeedNOTE using a Seed Round
Any previously created SeedFASTs / SeedNOTEs will already appear in your debt table, which is found in the Shares tab:
1. Add ‘Historical Debt’ to the Debt Table
If you haven’t done your Advance Subscription Agreements (SeedFASTs) or Convertible Loan Notes (SeedNOTEs) on SeedLegals, you can simply add historical rounds by clicking the 3 dots on the top right and selecting “add historical debt’.
Fill out the details. For a Convertible Loan Note, this includes: the date, the total amount, the low valuation, the cap and the interest rate if this applies. For Advance Subscription Agreements, you will only need to add the date and Share class.
2. Convert your SeedFAST / SeedNOTE using Instant Conversion
Step 1: Once your debt table is completed, you can select which funds you want to convert, and then hit the ‘convert’ button.
Step 2: Hit ‘Instant Conversion’ - and fill out the Instant Conversion terms in Step 1 of the deal flow.
Step 3: Add in the date and share class the ASA is converting into.
Step 4: You’ll need to complete the ‘Key Conversion Terms’ and send out the Conversion Notice. Next, sign the Instant Conversion Agreement. You'll need to get your investor to sign these too. When you create the Conversion Agreement you'll hit the paywall, so the next step is to unlock it.
5. Next you'll need to create and sign the Board Resolution, Shareholder Resolution and SH01 form:
6. Then when the above is completed hit: ‘issue share certificates’. You can see our guide on how to Issue your Investors with their share certificate here. Now, you've converted the SeedFAST / SeedNOTE into equity through the instant conversion - easy.
One last thing: remember to file the SH01 and Shareholder Resolution with Companies House. Our platform takes care of the creation - you just need to send it!
3. Convert your SeedFAST/SeedNOTE using a Seed Round
Step 1: If you have a Seed Round open on the platform this will convert your SeedFAST or SeedNOTE into equity as part of that round. If you haven’t set one up yet, no problem - the platform will direct you to start one. You’ll just need to enter the share class for your investors shares.
Step 2: Your conversion will now show in the investor list as part of your Seed Round and you can follow the remaining steps in the Funding Round to convert the equity. See this guide on how to complete the rest of your round, and convert your SeedFAST or SeedNOTE!