You’ve got questions, we’ve got answers!
We recently launched a Title III Equity crowdfunding campaign. We are excited to offer you the opportunity to invest in and own a part of From Fat to Finish Line !
We recognize the concept of investing money into a company is new for some of you. And investing money through a crowdfunding campaign is an especially new idea.
We received some great questions from many of you so we decided to come up with a Frequently Asked Questions (FAQ) sheet to answer some of those questions.
You can learn more about how you can invest in From Fat to Finish Line here.
FREQUENTLY ASKED QUESTIONS
How long is the campaign?
The campaign lasts until March 24, 2017. The $1.25 / share stock price is discounted 20% through January 25, 2017, as a special offer to our members.
How much can I invest?
The minimum investment is $150. Investors are limited in the amount they can invest based on the following criteria:
- If either the annual income or the net worth of the investor is less than $100,000, the investor is limited to the greater of $2,000 or 5% of the lesser of his or her annual income or net worth.
- If the annual income and net worth of the investor are both greater than $100,000, the investor is limited to 10% of the lesser of his or her annual income or net worth, to a maximum of $100,000.
Is the purchase safe?
Yes, StartEngine is a licensed FINRA broker-dealer. FINRA (the Financial Industry Regulatory Authority) is a non-government agency supervised by the Securities and Exchange Commission. Buying through StartEngine is the same as buying through a stockbroker like Charles Schwab. For more information, watch this video: http://www.finra.org/about
Why do they ask for my bank information?
You must provide your bank information to enable funds transfer to purchase the stock. StartEngine uses SSL Certificate protection that encrypts your information for your protection. View their SSL certificate. If you are not comfortable entering your banking information you may also invest via a wire transfer.
Can I use a credit card?
No, you must invest via direct transfer from your bank account or a wire transfer. In general, you are not allowed to buy stock with borrowed money. There are certain exceptions like using your existing stock portfolio for a margin account but StartEngine does not have that option.
What about the Perks?
Unlike donation or rewards-based crowdfunding platforms like Kickstarter, you are not pledging. You are purchasing stock in our company and becoming a part owner of the company. The perks are simply a thank you for larger investments.
If I invest more later and reach a perk level does that count?
Yes, you receive all the perks available based on your total investment at the close of the campaign. Perks are cumulative so if you invest $1,500 you get the memberships, owner jacket, and the spot on the Ragnar team.
Can I sell my stock?
Under U.S. securities laws, during the first year that you own the Class A Common Stock, your shares can only be resold under the following circumstances:
- In an IPO;
- To the Company;
- To an accredited investor; or
- To a member of your family or the equivalent, to a trust controlled by you, to a trust created for the benefit of a member of your family or the equivalent, or in connection with your death or divorce or other similar circumstance.
After a year you will be able to sell your stock on the open market. StartEngine is launching their secondary marketplace for trading such stock in March of 2017.
How do I get my stock?
We are using FundAmerica (www.fundamerica.com) an SEC Registered Transfer Agent to handle stock issuance. Your stock will be issued electronically. Once the campaign is closed you will receive an automated “certificate” (.pdf) and investor log-on information so you can track your investment.
Will there be reporting?
Yes, not only will the annual report be available on the FundAmerica site, all investors will receive it via email in addition to news and information throughout the year via our investor relations group.