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What is an investment share and why is it not a stock?

21.05.26
What is an investment share and why is it not a stock?

It is important to note right away:
The MLC project does not sell its stocks and has not sold them in the past.

The project's investment model is based on investment agreements and an investment share mechanism, which does not constitute conversion into a joint-stock company or a public offering of securities.

By investing in the project, a participant gets an investment share within the framework of a specific investment offer, determined by the terms of the agreement.

An investment share is a form of economic participation in the investment purpose of a project, which provides the opportunity to earn income in accordance with the terms of the investment agreement.

In layman's terms:
A project shapes an investment offer for the implementation of specific business objectives, and its investors participate in funding these objectives and get the economic participation share stipulated by the agreement.

At the same time, the investment share:
— is not a stock;
— is not a security;
— does not confirm co-ownership or ownership of stocks in the company;
— is not an option, warrant or other mechanism guaranteeing the receipt of stocks in the future.

This distinction is fundamentally important from both a legal and investment perspective.

The main document regulating the relationship between the parties is the investment agreement, which determines the rights, conditions of participation, and mechanisms for interaction between the project participants.

Correct understanding and use of these concepts allows for transparent communication, compliance with legal requirements, and sustainable development of the project.