🚀 Getting Started & Eligibility
Q: What types of companies can tokenize their shares on OTC Meme?
A: Any active legal entity with valid corporate standing and the ability to create a new preferred share class can tokenize. This includes:
- 📈 OTC-listed companies
- 🌫️ Grey market companies
- 💤 Companies with dormant or illiquid securities
Requirements:
Q: Do we need to be SEC-registered or filing reports to participate?
A: No. Many companies on our platform have ceased SEC reporting or never filed. We work with companies in various regulatory states, including:
- 📊 Active SEC filers
- 🌫️ Grey market with no broker-dealer quotations
- 📋 Ceased reporting companies
- 🚫 Never-filed entities
Q: What are Series "M" Preferred Shares?
A: Series "M" is a special class of preferred stock created specifically for tokenization:
// Series "M" Share Characteristics
interface SeriesMShares {
// Fixed specifications 📏
totalShares: 1_000_000_000; // Exactly 1 billion
immunity: "Stock splits & corporate actions";
conversion: "Convertible to common stock";
deposit: "Permanently at Empire Stock Transfer";
redemption: "Irrevocable once tokenized";
// Restrictions 🚫
votingRights: false; // No voting rights
dividends: false; // No dividend rights
companyAccess: false; // Cannot be reclaimed
}Q: How much does it cost our company to tokenize?
A: Primary cost is your mandatory token purchase:
| Purchase % | Price per Token | Total Investment |
|---|---|---|
| 40% | $0.00001 | $4,000 |
| 50% | $0.00001 | $5,000 |
| 60% | $0.00001 | $6,000 |
Additional costs:
- 🚫 No upfront platform fees
- ⚖️ Legal fees for share creation
- 💰 0.5% transaction fees on trades
⚙️ The Tokenization Process
Q: Can we reclaim our Series "M" shares after depositing them?
A: Absolutely not. Once deposited with Empire Stock Transfer, shares are permanently locked and irrevocable.
🔒 This is a fundamental feature that ensures:
- 🤝 Token holder confidence
- 🛡️ Manipulation prevention
- 💎 Permanent backing guarantee
Q: What's the timeline for tokenization from start to finish?
A: Typically 4-6 weeks:
| Week | Phase | Activities |
|---|---|---|
| 1-2 | 📋 Due Diligence | Documentation review |
| 2-3 | ⚖️ Board Resolution | Series "M" creation |
| 3-4 | 🏛️ State Filing | Certificate of designation |
| 4-5 | 🤝 Agreement | Tripartite agreement execution |
| 5-6 | 🪙 Launch | Share deposit and token minting |
Q: Do we need shareholder approval for tokenization?
A: Depends on your corporate bylaws and state law. Generally:
- ✅ Board approval only for new preferred share class
- 📋 Check specific governing documents
- ⚖️ State law may have requirements
- 🔍 Due diligence will clarify your situation
Q: What happens to our existing common shareholders?
A: Nothing changes for existing shareholders:
- 🚫 No dilution of existing common stock
- 📊 Series "M" newly created and separate
- 📈 Traditional cap table unaffected
- 🔄 Tokenization completely separate
📋 Company Obligations & Restrictions
Q: Can our company redeem tokens to get back our Series "M" shares?
A: Never. Companies are permanently prohibited from redemption:
// Company redemption restrictions
pub struct CompanyRestrictions {
// Enforcement mechanisms 🛡️
pub enforcement: EnforcementMechanisms {
smart_contract_blacklist: "Automatic rejection",
empire_rejection_protocols: "Custody-level blocking",
legal_agreements: "Severe penalty clauses",
public_disclosure: "Any violation attempts exposed"
},
// Prohibited actions 🚫
pub prohibited: Vec<ProhibitedAction> = vec![
ProhibitedAction::RedeemTokens,
ProhibitedAction::WithdrawShares,
ProhibitedAction::AccessCustodyAccount,
ProhibitedAction::ModifyShareTerms
]
}Q: Can we buy our own tokens on the secondary market?
A: Yes, but with restrictions:
- ✅ Can purchase additional tokens after initial buy
- 🚫 Cannot redeem them for shares
- 🔥 Cannot burn them to reduce reserve
- 💼 Business purposes only (employee incentives, partnerships)
- 🖤 All company wallets blacklisted from redemption
Q: What's our mandatory token purchase requirement?
A: Must purchase 40-60% immediately upon creation:
// Mandatory purchase requirements
interface MandatoryPurchase {
// Purchase specifications 📊
percentage: "40-60%" // Company chooses exact amount
timing: "Within 4 hours of minting";
preFunding: "Required before share acceptance";
purpose: "Demonstrates commitment + provides liquidity";
// Example calculation 💰
example: {
tokens: "500,000,000 (50%)",
pricePerToken: "$0.00001",
totalInvestment: "$5,000",
liquidityProvided: "Instant trading availability"
};
}Q: Do we have ongoing obligations after tokenization?
A: No mandatory ongoing obligations, but recommended:
- 💬 Maintain community engagement
- 📢 Provide periodic business updates (voluntary)
- 🗣️ Participate in token holder discussions
- 🏃♂️ Continue normal business operations
💰 Financial & Legal Considerations
Q: How does tokenization affect our taxes?
A: Consult your tax advisor, but generally:
| Event | Tax Treatment | Notes |
|---|---|---|
| Creating Series "M" | Typically non-taxable | Corporate restructuring |
| Initial token purchase | Capital investment | Business expense |
| Token sales | Capital gains/losses | Based on holding period |
| Fee payments | Deductible expense | Business operations |
Q: What if we go bankrupt or face SEC enforcement?
A: Protective conversion triggers automatically:
// Trigger event protections
pub enum TriggerEvents {
// Bankruptcy protection 💸
BankruptcyFiling {
chapters: vec!["Chapter 7", "Chapter 11", "Chapter 13"],
action: "Automatic conversion to common stock",
timing: "Immediate upon filing"
},
// Regulatory enforcement 🏛️
SECEnforcementAction {
triggers: vec!["Cease and desist", "Civil penalties", "Asset freeze"],
action: "Series M converts to common",
protection: "Token holders can claim assets"
},
// Criminal proceedings ⚖️
CriminalAction {
triggers: vec!["Indictment", "Conviction", "Plea agreement"],
action: "Immediate conversion triggered",
safeguard: "Protects token holder interests"
}
}🛡️ Protection: Token holders can claim assets through conversion process.