Need to convert your SeedFAST or SeedNOTE? Head over to the Convertibles section in your SeedLegals cap table. This guide explains how.
The Convertibles section is where you can find the company's outstanding debt and loan notes. This can be in the form of outstanding convertible securities, such as a SeedFAST (Advance Subscription Agreement), or SeedNOTE (Convertible Loan Note). By viewing this outstanding equity debt, you can keep track of when you’re contractually obligated to convert these investments and loans into equity, as well as actually converting them via an open Funding Round, or our Instant Conversion product.
The Convertibles table is found within the Shares Tab, next to the Cap Table.
When do I use my Convertibles Table?
Typically, we tend to see Founders use the convertibles table to convert their outstanding Advance Subscription Agreements, or SeedFASTs. After taking in investment via a SeedFAST, and signing off on the necessary resolutions, you can then close the workflow and update your Convertibles Table, preparing them for conversion. This is done by clicking the 'Complete and add to Convertibles Table' button once you've selected 'Mark as complete' on the individual SeedFAST. 
Can I use the Convertibles Table to convert Investments made outside of SeedLegals?
The Convertibles Table, much like the Cap Table, can store ‘historical convertibles’ as well as investments carried out on the SeedLegals platform. To convert these investments, you’d need to add these convertible agreements an 'existing convertible’.
You’ll be able to specify whether you’re adding a Convertible Loan Note, or Advance Subscription Agreement. Once that’s added to the Convertibles Table, you’ll be able to convert these via either a Funding Round, or an Instant Conversion. These scenarios are described below.
How to add an 'Existing Convertible’ to the Convertible 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 existing convertible’.
Fill out the details. For a Convertible Loan Note, this includes the date, the total investment amount, the valuation cap, any discount that may apply and the share class. As well as the interest type and rate, the maturity date and the maturity valuation. Please see an example below:
For Advance Subscription Agreements, you will only need to add the Investment amount, the Valuation Cap and Discount if necessary, the Share Class and the Scheme if relevant.
How does my investment convert into equity?
Your outstanding investments convert into equity within the following scenarios:
- Within the course of a traditional Funding Round - here your investors will participate in the open funding round, signing a Shareholders Agreement and receiving shares alongside the other investors within the round.
- Within an Instant Conversion Agreement - here your investors receive their shares at the valuation previously agreed in their SeedFAST or SeedNOTE (longstop or maturity valuation respectively). They will sign a Conversion Agreement which outlines the number of shares and share price to which the investor is subscribing. By signing this agreement, the investor agrees to the share price and number of shares being exchanged for their initial investment and agrees to be bound by any existing Shareholders Agreement and set of Articles of Association which may be in place.
If you are looking for further assistance on how to convert any of your outstanding convertibles, please reach out to our Team or jump on our Live Chat!
Similarly, please check out this helpful article below which further explains the process of converting your investments in an Instant Conversion.