How Does This Work
Below is a step-by-step overview that will familiarize you with our process
This is an overview of how our process works
Investor registration
You must first open an account with Tokenized Energy by completing the requested basic account information (name, address, contact info, etc.) – you may do so as a United States citizen or entity or a foreign national or foreign entity (although the information requirements vary based on your investor type). Once you have completed your initial account set-up, you can peruse our investment listings at a very high level, but cannot access the data room or
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the investment terms or make an investment until you have completed the entirety of the investor registration process and been verified by Tokenized Energy as a permitted investor – this process requires a fair amount of information, but we are required to request and verify this information about you or the entity you represent so that we can be compliant with United States Securities laws pursuant to regulations that are commonly referred to as Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, regardless of whether you are a U.S. citizen/entity or a foreign national/entity.
Note regarding your digital wallet: As part of your investor registration, you will be required to connect your digital wallet to your Tokenized Energy account – if you do not have one, the information button will provide guidance on how to create one. The digital tokens in which you elect to invest will be issued pursuant to smart contracts written for the Base blockchain and any distributions which we make to you will be made in USDC stablecoins on the Base blockchain. Base is what is called a L2 or layer 2 for the Ethereum blockchain (in other words, it is compatible as an Ethereum Virtual Machine (EVM)). Therefore, your wallet must be Ethereum compatible.
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Confidentiality Agreement
Some, but not all, of our investment opportunities require you to execute a Confidentiality Agreement before you can access the data room or the Private Placement Memorandum for a particular investment opportunity. If a Confidentiality Agreement is required, you will be automatically notified of the requirement and asked to sign it via Docu-Sign functionality which has been embedded into our platform (you will automatically receive an executed copy by email following execution).
Investment Documents
Once you have completed your investor registration and been confirmed as a permitted investor, executed a Confidentiality Agreement (if required) and completed your review of the data room (in your discretion), if you decide to invest in a particular investment opportunity:
(a) you fill in the space indicating the number of tokens you wish to purchase, then
(b) click on the “Invest” button just beneath the token information block; then
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(c) you will be automatically guided through the required execution of:
(i) a Subscription Agreement; and
(ii) an LLC Operating Agreement, both of which will have been automatically populated with the LLC’s name and address, your name and address, our electronic signature, the number of tokens for which you have subscribed and the total purchase price due (before the addition of any processing or other fees).
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Payment
Once you have completed all of the above steps, you must make a payment to us for your subscription price – you will be automatically taken to the payments page, where you will have the option to tender payment by ACH, wire transfer or the deliver of USDC stablecoins directly to the smart wallet assigned to the LLC in which you have elected to invest.
Token issuance
After your payment is confirmed by us AND the minimum subscription amount (if applicable) OR the total amount required to fund the entirety of the applicable investment is received by us from you and all other investors in the relevant investment, then you will be automatically issued a digital token representing the investment you subscribed for in the relevant LLC issued on the Base blockchain and it will be transmitted to the digital wallet which is associated with your investor account registered with us.
Distributions
If the LLC in which you have invested owns producing assets that generate revenue from oil, gas, natural gas liquids or any other produced hydrocarbon, then we will make distributions to you in accordance with the terms and conditions specified for the applicable investment. We will receive cash in the LLC’s bank account, will convert the relevant portion of such cash to USDC stablecoins and will transmit those USDC stablecoins to the digital wallet that is associated with … your investor account with us, subject to any cash reserves which we deem necessary to retain in our sole discretion in the to cover any future estimated operating expenses (if applicable to the LLC’s or LP’s assets), capital expenditure requirements or other fees and expenses. Read More
Exit sales
Your investment in the applicable LLC or LP is currently illiquid, due in part to requirements relating to restrictions on resale under United States securities laws and in part to the fact that Tokenized Energy does not currently offer a secondary trading market for the tokenized securities issued through its platform (note that trading volumes for security tokens are generally light on the limited number of exchanges where other security tokens are traded. If you would like to explore the sale of … any or all of your digital tokens issued through our platform, log in to your account, navigate to the wallet page where you can see your holdings – click on Sell and indicate the number of tokens that you’d like to sell and your asking price, if any (you can also choose “none”) – after you click “submit”, our technology will notify us of your desire to sell on those terms. We will then evaluate whether we want to purchase your interest and, if not, we’ll offer your interest to the other investors in the same LLC or LP from which your tokens were issued on a no-names basis – if we can match you with a buyer(s) for your token either at your asking price or at a counter-offered price, we will let you know and if everyone is agreed, we will facilitate the transfer between you and the buyer(s). While we will attempt to facilitate your exit, we cannot guarantee that you will achieve any particular price objective for your tokens or that you will be able to sell any or all of your interests – you must be able to accept that these digitized equity interests are illiquid. Read More
Tokenized Energy’s primary goals are
Providing Ground Floor Access to Exclusive Upstream Oil & Gas Investment Opportunities
to provide ground floor access to unique, attractive upstream oil & gas investment opportunities for our platform’s investors, offer those opportunities to our investors on reasonable terms and manage them in a professional manner;
Executing Our Strategy with Digital Efficiency and Blockchain Technology
to execute that strategy in a time and cost-efficient, digitally native manner that advances the trend of the tokenization of real-world oil & gas assets by leveraging off of the technical capabilities of distributed ledger blockchain technology.