Can I sell securities acquired on Republic?
Because the blockchain company issuing the securities is private, you cannot sell your securities on the public market. This makes it potentially difficult to find a buyer.
In fact, you are restricted from reselling your securities or the tokens received in connection with those securities in the first 12 months post closing of the offering, unless the shares are transferred:
- to the company that issued the securities
- to an accredited investor
-
to a nuclear family member:
a child, stepchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships.
- in connection with your death, divorce, or other similar circumstance
- to a trust controlled by you or a trust created for the benefit of a family member (defined as a child, sibling or parent of you or your spouse) or
- as part of a later offering registered with the SEC.
Any transfer during this period is still subject to state and foreign laws.
These restrictions apply to the Token DPA and any token received in connection with that contract.
You should know that there may be no market for the securities after the initial 12 month restricted period. Once the 12 month restricted period ends, any sale or disposition of the securities you hold must comply with applicable federal, state and foreign laws.
It is important that you only invest capital with the expectation of holding your investment for an indefinite period of time, and with the real risk of a total loss of your investment in mind. Only invest an amount you can afford to lose without changing your lifestyle.
Invest in the app
