The 10-for-1 Stock Split Is Complete
We’re pleased to report that last week KoreConX completed their implementation of the 10-for-1 stock split approved by shareholders earlier this year. There is nothing you need to do, but if you’d like you can login and view your shares at https://legionm.koreconx.com/login#/. IF YOU NEED HELP LOGGING IN TO SEE YOUR SHARES, PLEASE CONTACT TEAM@LEGIONM.COM.
FAQ
WHAT DOES THIS MEAN?
If you are not familiar with a split, it simply means that every single share of Legion M was converted into 10 shares. For example, if you previously owned 10 shares, you’ve been issued 90 additional shares so you now own 100. If you previously owned 100 shares, you’ve been issued 900 more so you now own 1,000. In short, all of our shares were multiplied by 10, resulting in 10x the shares at 1/10 the value. If you’d like more information about what a split is, please read this blog post.
IS THERE ANYTHING I NEED TO DO?
No. Everyone’s shares have automatically been split. If you’d like to see the split, you can login to KoreConX, but there’s no requirement that you do so, and nothing that you need to do.
WHAT SHARES/INVESTORS ARE AFFECTED?
All shares and shareholders were included, and all were treated exactly the same.
HOW DOES THIS AFFECT THE VALUE OF MY INVESTMENT?
It doesn’t affect the overall value of your investment at all. Since it occurred exactly the same way for every share/shareholder, it has no effect on the value of your total holdings, the % of the company you own, your voting power, etc. It’s simply the equivalent of trading a $10 bill for ten $1 bills – the denomination changes, but not the total value.
HOW WAS THE SPLIT IMPLEMENTED?
KoreConX implemented the split by issuing 9 new shares for every existing share previously owned and decreasing the original share price by a factor of 10 in order to preserve the original valuation of your investment. So for example, if you purchased 10 shares in Round 5 for $100 (at a price of $10 per share), you now own 100 shares for that same $100, at a post-split adjusted price of $1 per share. The transaction date for all split shares was 7/15/22, which is the date the split officially went into effect.
WHAT IF I HAVE MULTIPLE INVESTMENTS?
KoreConX issued split shares for each individual investment. So if you have multiple investments in Legion M, each one will have been adjusted to account for the split.
WHY ARE THERE DIFFERENT PRICES IN KORECONX FOR MY DIFFERENT INVESTMENTS? WHY DOESN’T IT SHOW THE CURRENT MARKET PRICE?
KoreConX shows the price you paid for the shares – not their current value. Since Legion M isn't actively traded, the notion of a "market price" isn’t really appropriate. For example, our split-adjusted Round 8 price was $1.50 per share, and we had over 7,500 investments that validated that price. But since there isn’t a market where you could easily sell your shares, it would be misleading to call it the "market price”. Someday we hope to IPO so that Legion M shares will have a market price just like shares of publicly traded companies, but until then the KoreConX interface is useful in helping you keep track of how much you paid for your shares.
HOW DOES THIS AFFECT THE “PRICE PER SHARE” FROM EARLIER ROUNDS?
Since you now have 10X the shares, the “price per share” we list in our financial documents is now 1/10th what it originally was. You can see this illustrated in the table below.
IS THE SPLIT GOOD OR BAD FOR EXISTING INVESTOR?
Neutral. Everyone’s shares were split the exact same way, so it has absolutely no impact on the value of your holdings, the % of the company you own, or your voting rights. It’s the equivalent of exchanging a $10 bill for ten $1 bills – you still have the exact same amount of value before and after.
HOW CAN I SEE MY SPLIT SHARES?
You can login and view your shares at https://legionm.koreconx.com/login#/. Note that if you have any trouble, or need help setting up your KoreConX account, please send mail to team@legionm.com and we’d be happy to assist.
WHY ARE THE SHARES BEING SPLIT?
Earlier this year we held a shareholder vote on a proposal for the 10-for-1 split. If you are interested to see the arguments for and against (or understanding what a split is), please read this blog post. We left the decision entirely up to our equity crowdfunding shareholders, with the shares owned by founders, staff, and insiders pledged to respect the vote of the community. Ultimately, the split passed with over 96.5% of the shares owned by our community voting FOR the split.
I DON’T SEE THE SPLIT SHARES IN MY ACCOUNT, OR AM HAVING PROBLEMS UNDERSTANDING WHAT I SEE IN MY ACCOUNT.
Please send an email to team@legionm.com and we’d be happy to look up your account and answer any questions you may have.
WILL THE SPLIT SHOW UP IN IN MY WEFUNDER OR STARTENGINE ACCOUNT?
No, the split only shows up in KoreConX, which is our official transfer agent.
WHAT IS THE DIFFERENCE BETWEEN KORECONX, STARTENGINE, AND WEFUNDER?
StartEngine and Wefunder are two platforms we've used that are registered with the SEC for the sale of shares via equity crowdfunding. The role of these platforms is simply the SALE of the shares. Think of it like Ticketmaster -- they are the one who sell you the ticket, but ultimately the venue and performer are the ones responsible for the show. If you login to your account on StartEngine/Wefunder you should be able to see your receipt and the contract you signed when you initially invested.
Once your investment closes, your shares are held at another company (also regulated by the SEC) called a "transfer agent". This is the company that maintains our "Cap Table" -- the database of ownership that legally defines who owns shares (and how many). If you need to change your information (e.g. name, address, etc) or want to transfer your shares (e.g. because you sold them privately, or want to give them to your kids), that's where you go.
Our transfer agent from launch through Round 4 was a company called Carta, but a couple years ago we moved to KoreConX. At that time, all the Carta data was migrated into KoreConX.
Every Legion M shareholder has a free account (Legion M pays the fees) on KoreConX -- you can login to yours at: https://legionm.koreconx.com/login#/. Note that if you have any questions or issues with your KoreConX account (including if you need help setting up your account), please send mail to team@legionm.com and we’d be happy to help get you sorted out.
THIS SEEMS COMPLICATED
It's definitely more complicated than anybody would like it to be. We hope to eventually get to a point where one can press a button to buy or sell Legion M shares the same way they do on RobinHood, E-Trade, or any other brokerage. Keep in mind that equity crowdfunding is still very new. It will mature eventually - for now you can take satisfaction in what an early-adopter/tastemaker you are. If Legion M is as successful as we hope to be, the extra work you’ve done to get in early should be well worth your while! 🙂