Customers wishing to allow their shareholders to sell a portion of their holdings prior to a traditional 180-day lockup expiration can now control early lockup release programs through Carta. With Carta’s early lockup release functionality, your company can specify the quantity of shares each shareholder can sell during a specified period.
Carta’s Public Market Equity Management Services team will work with companies to determine:
- shareholder eligibility for the early lock-up release period
- the start and end date of the liquidity period
- how many shares each individual may sell during the period
After gathering this information, Carta will then work with the customer to complete an import template, which will be uploaded to Carta's public platform. Eligible shareholders will now be able to see the quantity of shares they can trade, what they’ve already traded, and what portion of shares is still remaining.
Allow your employees to begin trading company shares Day 1 post-IPO
The early lockup release feature:
- allows your employees to sell prior to the standard 180-day lockup period while enforcing the terms of your company’s early lockup release program; and
- makes it easy to instruct participation eligibility and quantity limits for all shareholders.
Figure 1: Shareholders can monitor the number of shares they can sell during the early lockup release.
Figure 2: Shareholders are limited to the quantity of shares that they are allowed to sell per the rules of the early lockup release. Quantities can be set specific to an individual.
Trade limits apply across asset types. The sale of long stock, in addition to cashless option transactions, will count against the shareholder’s total allowed quantity to trade, ensuring that the stakeholder won’t oversell per the terms of the early lockup release.
Reach out to Carta to get the process started
Reach out to Carta’s Public Markets team (firstname.lastname@example.org) to begin customizing an early lockup release benefit for your employees ahead of an exit.