Converting or Repaying a Convertible Loan Note (Individually)

Easily convert or repay convertible loan notes in Carta.

• Registering Offline Conversion: Convert the convertible loan note into shares (this does depend on the conversion terms whether it is a conversion discount or a fixed conversion price).
• Registering Offline Repayment: Repay the convertible loan note (this can be a partial repayment).
• View, edit or delete the conversion or repayment transaction.

Registering Offline Conversion

1. Navigate to Fundraising > Unpriced investments > Closed investments.

2. Click the Actions Button located on the right-hand side of the convertible and Register offline conversion.

3. Enter the details related to the conversion. The required details (marked with a red asterisk on the platform) will vary according to the convertible type. The details can include:

• Date of conversion: The date of when the conversion took place. 
• Choose to convert all outstanding or specify an amount to convert:
  - Convert all outstanding: This will convert all the outstanding notes into shares. 
  - Specify amount to convert: Manually input a specific amount you would like to be converted.
• Registration Date: This is the official date of entry into the shareholder register (you can choose this to be the same as the transaction date, or leave as blank).

4. Click Save draft or Publish.

5. It is possible to specify the number of shares that will be issued with the conversion. In this case a share price and the number of shares to be issued will be required.

6. Click Advanced to associate the conversion with a funding round,  share class or add a priority key.

Registering Offline Repayment

1. Navigate to Fundraising > Unpriced investments > Closed investments.

2. Click the three-dotted button located on the right-hand side of the convertible and Register offline repayment.

3. Enter the date and select to repay the full convertible or a specific amount. Click Save draft or Publish.

4. Click Advanced to associate the repayment with a funding round.

View, Edit or Delete the Conversion or Repayment Transaction

1. Navigate to Fundraising > Unpriced investments > Closed investments.

2. Click Drafts to bring up the transactions page.

3. Click Conversion (draft) to open a right side bar and view the transaction details.

3. Click the Actions Button located on the right-hand side of the transaction and select Edit or Delete .