Sharkaroo
Digital Securities + Blockchain Development

Digital Securities

Process

 

Discovery & Project Review

(Optional)

Typical Investment
$10,000 - $25,000

Description

Discovery and Project Review fees are fully credited to your offering if you choose Sharkaroo to be your Digital Securities Offering Project Manager.

Typical Duration - 2 – 4 weeks

Deliverables

  • project review & recommendations

  • project financial analysis

  • executive education as required

  • high-level technical review

  • high-level technical architecture

  • on-demand consulting

 

 
 

Onboarding

PRE-OFFERING

Stage 1 of 4

Typical Investment
$20,000 - $50,000

Typical Duration - 2 – 4 weeks

Deliverables

  • Project review & recommendations

  • Statement of Work (SOW)

  • Definition of Objectives & Key Results (OKR)

  • Vendor assessment & selection

  • Soft due diligence

  • Project financial analysis

  • Offering roadmap

  • Smart contract architecture

  • Assignment of account manager and project manager

  • High-level technical review

  • High-level technical architecture

  • Deck & document review

  • On-demand consulting

Description

All projects must pass soft due diligence prior to progressing to Stage 2. Beyond the issuance, this includes key shareholders, ultimate beneficial ownership and the Sr. - Mid Level management team and any high-performers. In Stage 2 there will be a more comprehensive due diligence run by the primary broker-dealer or investment bank as appropriate which are billed directly by the broker-dealer. Learn more about our due diligence process.

 
 

Development, Compliance & Marketing Prep

PRE-ISSUANCE

Stage 2 of 4

Monthly Retainer
Varies depending upon Sharkaroo team size and complexity of offering. $10,000 - $50,000 per month.

Expenses
Invoiced monthly

Issuance Fee Schedule
$0 - $10M - $75,000
$10M - $25M - $250,000
$25M - $50M - $550,000
$50M - $100M - $925,000
$100M+ - please contact Sharkaroo

Common Stock Warrants
Sharkaroo asks for stock warrants with a five year expiry date in an amount of of $2.5M, exercisable at the average share/token price of securities sold during this offering event.

Vendor Onboarding, Registration and
Monthly Fees
Payable directly to vendors and appropriate agency. Major fees include legal, financial filing, accounting with marketing campaign being the largest variable expense.

Success Fees/Commissions
All Broker-Dealers or Investment Banks involved in the offering generally charge 2.0% - 10.0% fees on total amount of funds raised.
Sharkaroo is not a registered Broker-Dealer and does not charge success fees.

Description

This is the most-active stage of a Digital Securities Offering, we have multiple critical paths occurring in parallel including: compliance, legal preparation, cap table, securities exchange interaction, smart contract definition, testing and security audit, marketing campaign definition and preparation for launch.

Key Stakeholders

  • Securities or Digital Securities Attorney

  • Issuance Platform

  • Primary KYC/AML Provider

  • Primary Broker-Dealer or Investment Bank (typical, but not required in all jurisdictions)

  • Auditor (preferred) or Financial Attestment via CPA

Typical Duration - 4 – 10 weeks

Deliverables

  • Marketing campaign plan

  • Weekly project status report and meeting

  • Prospectus creation (optional, but highly recommended)

  • Comprehensive offering due diligence

 
 

Primary Offering Listed

ISSUANCE

Stage 3 of 4

Typical Investment
$10,000 - $50,000

Description

Typical Duration - 2 – 3 months

Deliverables

Marketing and sales campaign begins

Escrow

 
 

Secondary Offering Trading Goes Live

Post-issuance

Stage 4 of 4

Description

After trading restrictions are lifted (typically one year) the security token is listed on one or more exchanges for secondary trading. Secondary markets are at a nascent stage with most common being Alternative Trading Systems (ATS), OTC equivalents, a handful of secondary exchanes. There are several national stock exchanges that should be ready to begin trading by the end of 2019.

Optional: Token conversion to multichain framework

Current List of Security Token Exchanges

Typical Duration - 1 – 2 months

Deliverables

  • Managing Primary Exchange Listing

  • Smart Contract Sandbox trading testing prior to going-live

  • Custodian and Trust establishment as applicable