Repurchasing shares

Before repurchasing shares, consult your legal counsel to make sure a repurchase agreement has been executed.

Repurchasing shares (Transaction outside of Carta)

Please note that if both the company and the holder have their respective bank accounts attached in their Carta accounts, the company will be able to send funds through Carta. Please proceed to the heading titled Repurchasing Shares (transaction through Carta).

1. To repurchase a certificate, navigate to 'Shares' under Securities. Then select 'Repurchase shares' in the drop-down menu for the appropriate tranche. 

The number of shares is automatically filled based on "Repurchase from." The unvested and vested shares will need to be repurchased separately. If repurchasing unvested shares, the certificate will need to be terminated first, which can be completed at the stakeholder level, shown here.

2. Review the details of the repurchase and then click 'Repurchase shares.'The original certificate will now say "Repurchased."

A new balance certificate will be created and sent to company officers for signature and issuance:

Repurchasing Shares (transaction through Carta)

1. To repurchase a certificate, navigate to 'Shares' under Securities. Then select 'Repurchase shares' in the drop-down menu for the appropriate tranche. 

The number of shares is automatically filled based on "Repurchase from." To repurchase from both vested and unvested, enter the correct number of shares. When a repurchase is due to a termination, terminate the certificate first, shown here. Attach an executed repurchase agreement.

Please note that if both the company and the holder have their respective bank accounts attached in their accounts, the company will be able to send funds through Carta. 

*If you would not like to transfer funds through Carta and would like to proceed with the transaction offline, please toggle "Transfer funds via ACH" off.* 

2. Review the details of the repurchase and then click 'Repurchase shares.'

The final screen will confirm the number of funds transferred out of the company's account.The status of the grant will now be "Repurchased."

A resulting certificate will be created if there is a remainder (CS-20).