UPDATED 11/7: Round 3 Closing Update
UPDATE NOV 7, 2018
Today we issued Carta certificates to 281 investors, bringing the total number of Round 3 investors who have closed their investment to 2,683. There are 2,138 more investors still in the queue. If you are on this list you should have received an e-mail today with a more detailed update and description of next steps.
Those still waiting are (with a few exceptions) people who invested or added funds to their investment AFTER the Reg CF hit its maximum. All the money from these investors is still in escrow—we don’t receive funds until a close occurs and the certificates are issued. Right now everything is in Wefunder’s hands as they work diligently to wrap things up as quickly as possible.
Thank you all for being patient as we go through the closing process. Trust us when we say we are just as eager as you to finish this off.
In the meantime, if you missed Round 3 (or want to double/triple/quadruple down on your earlier investment!), we will be making an announcement about Round 4 tmw. There’s still time to make a reservation at www.legionm.com/reservations.
UPDATE NOV 1, 2018:
There is a light at the end of the tunnel!
Last Friday the SEC qualified our Regulation A offering, which is the underpinning of our plan to handle oversubscriptions from Round 3 (as well as the basis for round 4). Also, just yesterday we got the final list of Round 3 Reg CF investors from Wefunder which means we can FINALLY import them to Carta and send certificates to those folks (as you can see from the October 22 update, we were expecting this list nearly two weeks ago).
We’re sorry this has been such a long, drawn-out process, but unfortunately it’s par for the course. The laws that enable what we’re doing are still very new, and a lot of the infrastructure is still being developed. Wefunder and Legion M bend over backwards to do right by our investors (e.g. opening a Reg A to accommodate oversubscription from the Reg CF), but oftentimes that creates a lot of extra work and complicated dependencies. We’re getting better with each round (even with all the delays with round 3, we are MONTHS ahead of where we were at this point with Round 2), and are profoundly grateful for your patience and support while we iron out the wrinkles. Bumps like these are just one of the joys of pioneering a new frontier instead of sticking to well-travelled roads.
The largest external dependency now appears to be final legal approval of an omnibus escrow account with Boston Private Bank (the bank that handles our escrow, anti-money laundering checks, etc). We’re working through the final plan and timeline with Wefunder as we speak, and will provide an update once news is available.
UPDATE OCT 22, 2018: It took a bit longer then expected, but last week Wefunder processed the last batch of investors for the Reg CF. Carta certificates should go out to all those people this week.
Everyone who is left (and there are nearly 2000 of you!) is someone that invested AFTER the Reg CF hit its limit. To accommodate all of these people, we filed for a new round under Regulation A that is currently in the process of being qualified by the SEC. (If you are interested you can review the latest version of this filing here). It’s not clear when that will be approved (we originally filed on July 31st—it’s a sloooooooow process!!), but we expect to hear back within the next 1.5 weeks. In the meantime, we’re going to send an e-mail to share this update with everyone who is affected.
If you have any questions at all, please go ahead and send e-mail to firstname.lastname@example.org.
UPDATE OCT 8, 2018: Wefunder has sent out cancellation notices to everyone who did not complete or had some issue with the investment process. So at this point you should have received either a cancelation notification from Wefunder, or an e-mail update from Legion M stating that all is well. If you haven’t received one of these, please reach out immediately to email@example.com.
We expect to import another set of investors into Carta this week. Once that is complete we will e-mail everyone else who is still waiting to give you an update on the process. Thank you so much for all your patience!
ORIGINAL POST DATE SEPT 17, 2018:
Legion M’s third round SOLD OUT faster than any in company history. Our max limit under Regulation CF was $902,000 but we ended oversubscribed with more people wanting to invest than we had room to accommodate. In accordance with our NO FAN LEFT BEHIND philosophy, we’ve filed for a Regulation A offering to accommodate the extra demand. We are committed to ensuring that EVERYONE who attempted to invest in Round 3 prior to the deadline has the opportunity.
Ever since Round 3 ended, Wefunder has been working diligently to run all the necessary checks and complete the work required to officially close the round. For previous rounds, this has taken as long as six months; fortunately Wefunder has made significant strides at reducing this lead time. On September 11th, 6 weeks after the end of the round, we sent out an e-mail from Carta.com (our registered transfer agent) to approximately HALF of the round 3 investors. We expect to send out the remainder within the next few weeks.
If you were in the first batch, you should have received an e-mail inviting you to accept your shares into your Carta account. If you don’t already have an account at Carta.com, you will be prompted to create one. This is all free to you—Legion M covers the costs.
If you did NOT received a notification from Carta, please don’t despair! It just means that you are in the second batch, and you should expect to hear from us within the next couple weeks. If, when the second batch goes out, you STILL don’t receive a notification, then we’ll be happy to investigate further. As always, we’re committed to ensuring that NO FAN GETS LEFT BEHIND!
Thank you for bearing with us as we go through this process. With over 4,000 investors in Round 3, we are over 10X larger than most other companies on Wefunder. That’s GREAT news for Legion M and our investors, but it does lengthen the closing process. We appreciate your patience. If you have any questions, feel free to contact us at firstname.lastname@example.org.
NOTE ABOUT CARTA CERTIFICATES:
Carta.com (formerly eShares) is Legion M’s registered transfer agent. That’s where we maintain our Cap Table, which is the official record of who owns each share in the company. If you invested in Round 1 or 2, you should have received an invitation to accept your shares long ago. If you haven’t, please check the email address you use for your wefunder.com account (don’t forget to check your spam filter) for an e-mail from Carta.com. If you can’t find the Carta e-mail, please contact us at email@example.com and we’ll be happy to investigate.