Create and edit a convertible note round

Simplify the process of creating a convertible note by using the Diligent Equity wizard. The wizard guides you through the required details step by step, with optional fields you can complete later. Commonly, a note will have either a conversion discount or warrant coverage. The warrants are exercisable for the equity security sold in a company's next financing round.

Note

  • Optional fields can be completed later by selecting Settings in your Note view.

  • Any previously created notes are available to view under Securities > Notes.

  1. Go to the Securities section in the navigation sidebar and select Notes.

  2. Select + New convertible note.

    The New convertible note wizard opens.

  3. Fill out the information, and select the relevant options on the first page of the wizard.

    1. Name and date.
    2. Scenario: Select Actual if you are entering actual data.

    3. Convert to: There are a few options here which will determine and other fields.

  4. Select Next to move to the Discount page in the Wizard and fill out the information.

    1. Initially: Enter the initial discount percentage.
    2. Accumulate (_) Monthly: Enter any additional monthly accrual.
    3. After (_) Months: Enter the period after which additional monthly discounts begin. If they begin immediately leave this field blank.
    4. Maximum: Enter the maximum discount that applies.

    5. Accrued discount is automatically filled by Diligent Equity based on the preceding data.

  5. Select Next to move to the Interest page in the wizard and fill out the information.

    1. Period can be set an Yearly or Monthly.
    2. Computation can be Simple or Compound.

    3. Accrued interest is automatically filled by Diligent Equity based on the data entered above it.

  6. Select Next to setup the Maturity information.

  7. Select Next to add notes or select Finish to close.

Your note issuance will be listed under Securities > Notes.

Note

To select more than one closing date for the financing select Settings in the Note view, and go to the More tab. Select the Enable different closing dates for different shareholders check box.

Edit your convertible note

After creating your convertible note you may want to update or add information. This can be done from settings in your convertible view.

  1. Go to the Securities section in the navigation sidebar and select Notes.

    Any previously created convertible notes will display in a dropdown menu.

  2. Select the note you want to edit.

  3. From the toolbar, select Settings.

    A settings window opens displaying the tabs and information available for updating.

  4. Select the tab containing the information you want to update.

    You can make multiple updates to your note.

    Note

    The More tab contains options for preference calculations and the option to enable different dates for shareholders.

  5. Select Close to save.