Spinoff share distributions on Upstream

What’s a spinoff share distribution and how do you participate on Upstream?

Upstream
5 min readSep 8, 2023

By Vanessa Malone

Upstream, a MERJ Exchange market, is a globally accessible trading app for securities and NFTs. Powered by blockchain technology, Upstream features what we believe to be the future of transparent, instant, peer to peer trading.

We are actively accepting dual listing applications from issuers around the world seeking access to a global, digital-first investor base that can trade Upstream securities with credit/debit card, PayPal, and USD along with USDC digital currency.

Issuers are also beginning to take advantage of Upstream’s efficient spinoff share distribution technology. Here’s what it is and how shareholders of these Upstream issuers can participate.

What is a spinoff share distribution?

A spinoff is a new company that’s created when a parent company distributes shares in a subsidiary or business division to the parent company shareholders. Once the parent company has completed their regulatory approvals in their primary market or jurisdiction, the parent company will set a record date where all parent company shareholders as of that set record date (i.e., shares purchased and held 2 days or more prior to the record date) will be entitled to receive an equal proportion of shares in the spinoff company.

How do I participate in a spinoff share distribution?

Shareholders of the set record date can download Upstream from the Apple App Store or the Google Play Store and tap Sign Up. Next, complete KYC identity verification ahead of the distribution date by tapping the settings icon from the Upstream app homescreen, then KYC. Once you have your brokerage statements confirming your shareholding as of the record date, which typically happens a few weeks after the record date, please proceed to the request your share distribution and verify your shareholding.

How do I request my spinoff share distribution?

Once your KYC identification has been approved on Upstream, you’ll be able to request your share entitlement on the app.

  1. On the Upstream app, tap Investor, Manage Securities, then tap Spinoff Securities.
  2. Select the spinoff ticker symbol from the menu dropdown, select the parent company ticker symbol, and enter the number of shares owned in the parent company as of the record date. Note: Share entitlement will be the number of shares of the parent company you held as of the record date divided by a spinoff ratio, which will be disclosed by the company after the record date. It is extremely important that you enter the correct number of shares you owned in the parent company as of the record date. Any variation may result in delayed share delivery and additional information requests.
  3. Tap Claim.
  4. Upstream will send you an email to verify your shareholding. You’ll be asked to send a copy of your brokerage statement(s) via email showing your parent company shareholding as of the record date (i.e., parent company shares purchased and held 2 days or more prior to the record date).
  5. Once your parent company shareholding has been verified by Upstream and after the distribution date, your spinoff company share entitlement will be automatically deposited into your Upstream Portfolio. You’ll receive a push notification in the Upstream app announcing their delivery. Shares may take up to 4 weeks to post to your Upstream portfolio after your initial claim.

Please note that spinoff share allocations to Upstream accounts will not begin until the distribution date.

Upstream is thrilled to support spinoff share distributions for our forward-thinking issuers.

Interested issuers can reach Upstream at https://upstream.exchange/GetListed.

Disclaimers

This communication shall not constitute an offer to sell securities or the solicitation of an offer to buy securities in any jurisdiction where such offer or solicitation is not permitted.

NFTs have no royalties, equity ownership, or dividends. NFTs are for utility, collection, redemption, or display purposes only. Anyone may buy and sell NFTs on Upstream.

* U.S. or Canadian-based citizens or permanent residents may only deposit, buy, or sell securities on Upstream after being introduced by a licensed broker-dealer. A list of licensed broker-dealers can be found on the Upstream Support Center. Note that U.S. or Canadian-based investors include those U.S. or Canadian citizens who may be domiciled overseas. All orders for sale are non-solicited by Upstream and a user’s decision to trade securities must be based on their own investment judgement. Anyone may buy and sell NFTs on Upstream.

Upstream is a MERJ Exchange market. MERJ Exchange is a licensed Securities Exchange, an affiliate of the World Federation of Exchanges, a National Numbering Agency and member of ANNA. MERJ is regulated in the Seychelles by the Financial Services Authority Seychelles, https://fsaseychelles.sc/ an associate member of the International Association of Securities Commissions (IOSCO). MERJ supports global issuers of traditional and digital securities through the entire asset life cycle from issuance to trading, clearing, settlement, and registry. It operates a fair and transparent marketplace in line with international best practices and principles of operations of financial markets. Upstream does not endorse or recommend any public or private securities bought or sold on its app. Upstream does not offer investment advice or recommendations of any kind. All services offered by Upstream are intended for self-directed clients who make their own investment decisions without aid or assistance from Upstream. All customers are subject to the rules and regulations of their jurisdiction. By accessing the site or app, you agreed to be bound by its terms of use and privacy policy. Company and security listings on Upstream are only suitable for investors who are familiar with and willing to accept the high risk associated with speculative investments, often in early and development stage companies. There can be no assurance the valuation of any particular company’s securities is accurate or in agreement with the market or industry comparative valuations. Investors must be able to afford market volatility and afford the loss of their investment. Companies listed on Upstream are subject to significant ongoing corporate obligations including, but not limited to disclosure, filings, and notification requirements, as well as compliance with applicable quantitative and qualitative listing standards.

Forward-Looking Statements

This communication contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential,” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) difficulties in obtaining financing on commercially reasonable terms; (ii) changes in the size and nature of our competition; (iii) loss of one or more key executives or brand ambassadors; and (iv) changes in legal or regulatory requirements in the markets in which we operate. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

--

--

Upstream

A MERJ Exchange Market. Ethereum-powered trading app for digital securities and NFTs. Learn more at https://upstream.exchange/.