Why tokenize your shares
Initial Coin Offerings (ICOs) have shown the potential to revolutionize traditional forms of fund raising, such as Venture Capital and Initial Public Offerings. However, ICOs have a major flaw: They do not convey any enforceable rights to tokenholders. Investors began to notice, and ICO funding dropped significantly.
Tokenized Shares combine the strengths of ICOs and traditional shares
Enforceable rights
Tokenholders become shareholders with enforceable dividend and voting rights.
Quick & low-cost process
The entire process can be done in weeks. No FINMA no-action letter required.
Easy transferability
The transfer of the token equals the transfer of the share. No wet or even digital signature is required.
How Share Tokenization works
The tokenization of your shares requires three layers.
Legal foundation
Amendment of the articles of association, board member resolution on the share token terms, investor documentation.
Smart contract
On-chain issuance of tokens on the Ethereum blockchain, declare loss functionality, connection with the share register.
Share register
With a smart interface, you can manage your share register, dividend payments and voting directly.
We work with trusted IT partner Aktionariat AG for the smart contract and the online share register.
Share Tokenization fees
Tailored packages for specific needs
(A) The Workshop Package
If you wish to execute the legal part of the tokenization yourself but have any open questions or specific topics you wish to discuss, LEXR offers a one-hour individual workshop. For example, we can cover the following topics:
Scope:
Corporate Law:
How to create the share tokens (questions around ownership of own shares)?
Requirements in the articles of association and the registration agreement
Relationship between the Token Shareholders’ Agreement and existing Shareholders’ Agreement
Financial market regulation: What are possibilities and limitations of marketing the share tokens in Switzerland? Sale of tokens outside of Switzerland
Taxes: Potential tax consequences for the company and the shareholders Advice on possible tax rulings
Flat Fee: CHF 600 (excl. VAT)
Book a free call
(B) The Public Sales Package
To ensure that everything is also implemented from a legal perspective in line with the current state-of-the-art, LEXR offers a full legal execution package.
Scope:
Corporate Law:
Advice on obtaining ‘own shares’ for the tokenization and public resale
Amendment of articles of association
Capital increase (drafting of all documents incl. communication with notary and commercial register)
Amendment of prior Shareholders’ Agreement to align with the Token Shareholders’ Agreement
Advice on the Registration Agreement and Token Shareholders’ Agreement
Financial market regulation:
Advice on marketing strategy and restrictions in Switzerland
Review of marketing documentation and disclaimers
Taxes:
Advice on tax structuring and consequences
Obtaining a tax ruling for potential share sale profit
+ LEXR Certified Tokens’ badge for your website, certifying that your Share Tokens are in line with the state-of-the-art!
Timeline: Appx. 3-5 weeks
Flat Fee: CHF 1’600 (excl. VAT, notary and commercial register fees, as well as excl. fees related to technical implementation & related advice)
Out of scope:
Communication with shareholders/investors (e.g., info events or participation in general assembly)
Drafting of Swiss prospectus (only required above CHF 8m public sale per annum)
In case of public sale in other jurisdictions, research on non-Swiss prospectus requirements and execution of relevant (legal) operations outside of Switzerland
Drafting of investment agreements for private sale
KYC / AML advice
Technical Implementation & Advice (provided by trusted IT partner Aktionariat AG for a technical setup fee of CHF 3’400 only)
Other Options
Want to incorporate your new company in Switzerland with tokenized shares from the very beginning?
It is now possible within our LEXR Incorporation Package (incl. the ‘LEXR Certified Tokens’ badge for your website).
Starting from CHF 500 for the legal operations (excl. VAT, notary, and commercial register as well as technical implementation fees).
Add-ons such as incorporation with crypto & Shareholders’ Agreement for co-founders are also available!
Timeline: Appx. 3-5 weeks
Want to set up an employee participation plan, but with tokenized shares?
You can now issue the full share compensation package to your employees from day one with a clawback enforced through a smart contract.
Starting from CHF 2’800 for the legal operations (excl. VAT, notary, and commercial register as well as technical implementation fees).
Timeline: Appx. 3-5 weeks
Why choose us?
No platform dependency: Your shares are freely tradeable on the Ethereum-blockchain without any intermediaries.
Experience: Work with blockchain experts that have done it before.
All-in-one solution: No prior technical or legal know-how required.
Price certainty and low cost: Flat-fee solution with highly efficient digitized legal processes.
Speed: Fast execution and close collaboration between tech and legal.
Share Tokenization frequently asked questions
Book a free call
(1) Select a timeslot
(2) Enter your details and choose a contact method
(3) Get a calendar invite with all details and we’ll be in touch