Company Charter

The tokens issued in an STO represent the company stock. The company has
to define the various attributes of the stock such as the voting rights, preferred or ordinary,
dividends etc. This may require changes to the company’s charter. Company A had 10MM authorised
shares and only 1MM issued shares, and they decided to issue 5MM additional shares for the token
sales via STO.
STO Documents 

Company A has to define terms and conditions of the STO in an Offering
Memorandum. This document is less comprehensive than a prospectus, used for public
offerings.Company Overview, Risks and FinancialsAn overview of the business, business risks and financial reports.Offering DetailsCompany A decided to launch an STO under Regulation D, Rule 506(c) since this allowed them to perform
solicitation for their offering. The terms were: Minimum Investment Size $10,000. This was done to
ensure that valuable investor slots are not taken up by small investors Rights No dividends or
voting rights were granted with the token offering. Obligations The company established the right to
block tokens if buyers do not complete their KYC/AML/ Accreditation process. Transfer Rights
Secondary trading was allowed as permitted by the existing securities regulations. Price Price of
one token was set at $1. Selling 30 million tokens to raise $30 million Accepted Currencies The
company allowed investors the flexibility to invest using BTC, ETH, USD Cap The upper and lower
limits set for the raise Closing Dates The date at which the offering ends. Use Of Proceeds Proceeds
were tentatively earmarked to perform a series of M&A transactions
Marketing 

Since the 506(c) allows for general solicitation, the company set aside a budget for marketing purposes. Due to the cap on the allowed number of investors, the marketing activities had to be more focused and cost-effective than that of an ICO. The company spent $100,000 on marketing its offering. To manage the investor onboarding, the company chose to use a white label landing page.