Purchase tokenized shares at NeoBroker Smart Fund
In this section, we'll guide you through the whole process flow, starting from the initial purchase and to different exit scenarios.
NeoBroker Smart Fund is a set of smart contracts that automates and simplifies investments, providing the users with the ability to acquire a direct or indirect economic interest in pre-IPO companies in form of BEP-20 standard tokens and receive profits when these companies go public.
All user funds will be contained in the NeoBroker smart contract until the fund reaches full capacity or until the end date of the offering.
If the smart contract receives enough funds to reach the capacity before the offering ends, the proceeds will be automatically transferred to Ambisafe in exchange for Interest Tokens. After receiving Interest Tokens in the NeoBroker Smart Fund, users will be able to claim their owned tokens to the wallets.
If there are not enough funds to fulfill the smart contract and execute a purchase on the ending date, then the proceeds will be automatically returned to respective token purchasers.
The exit strategy consists of selling securities on the company's listing day, the first day when a company's shares become available for public trading on the exchange. Usually, this date is set 90 days after the date of IPO.
Depending on the market situation, the listing price of the company's stock will differ from the offering price. This means several outcomes for token holders.
If the listing price is higher than the offering price, the fund will automatically sell the full allocation of shares and then distribute the proceeds to token holders via a smart contract. In this case, a 20% carry fee will be exempted from returns by LocalTrade.
If the listing price is lower than the offering price, the process is similar. Fund will also automatically sell the full allocation of shares and distribute the proceeds to token holders. In such a case, the return will be lower than the initial investment, but no fee will be exempted by LocalTrade.
Typically, it takes 12-24 months for companies to complete all the IPO activities and become public. A very rare, but not impossible case might happen if the company never goes public. In this situation, the fund will announce the date of the redemption event. On the redemption event date, shares will be repurchased by the fund according to their actual calculated value, which might be higher or lower than the offering price. A 20% carry fee on redemption will be exempted only if the return is positive.
The first step is purchasing the tokens from your selected company. To do so, go to the NeoBroker Smart Fund page and check out featured companies. Choose a company to invest in and click on it to go to the offering page.
On the company page, you'll see details about this offering: price, dates, valuation, etc. To purchase shares, you'll need to connect a wallet to the website. If you need any assistance, please refer to this guide: https://docs.localtrade.cc/getting-started
Your wallet might request additional authorization to execute BUSD or LUSD transactions. In such a case, allow the transaction first and then retry your purchase.
After connecting, you'll be able to see your wallet details on the website and choose a payment currency: BUSD or LUSD (LocalUSD). Enter the amount of tokenized securities to purchase and press Allow to authorize BUSD/LUSD transactions.
After the last step, you're finally ready to Buy the tokens. Enter the amount of tokenized securities to purchase and press Buy to purchase tokens.
After the purchase, your tokenized securities will remain locked in the smart contract until the end of the offering, after which they will either be available to claim or redeemed immediately.