Every ETO investor has equal rights to any regular company shareholder. In case of an exit, all Equity Tokens will be retracted from Token Holders and “burned.” The payouts will be distributed to all Token Holders. These operations will be managed by Equity Token smart contracts. Following typical exit strategies for shareholders, you will be able to sell your shares according to the same terms (including price) as the majority shareholder (in many cases this means the company who has issued the shares in the first place). These rules are laid out in the term sheet that companies disclose before conducting an ETO. Based on the term sheet, investors can choose whether they wish to invest or not.
Created by: Shani Koren
Modified on: Wed, 20 Mar, 2019 at 12:33 PM
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