Investor Update: Getting Ready for CNG Conversion

December 16, 2020

As the year 2020 heads towards a successful end for Change as a company, it’s time to give an update on what to expect as a Change investor. 

Firstly, it’s important to mention that we have updated our terms and conditions for the CNG token. If you’re a CNG holder, it’s important to read the terms carefully. We will list out here some of the more important changes. You have 30 days to read and understand the terms. If there’s something you don’t agree with you can contact our support by the 15th of January 2021. After that, you will have accepted the new terms. 

Secondly, the CAG token swap is coming to an end on 31st of December 2020. If you’re new here and don’t know about the token swap, then make a cup of coffee and read this article. In short, investors who took part in the first crowdfunding event in 2017 received CAG tokens based on their investment amount. Throughout 2020 these tokens could have been converted into CNG with a daily changing ratio.

The CAG tokens will still exist in the Change ecosystem as utility tokens, but they can’t be converted to CNG which would give the equity upside. So if you still have CAG in your Ethereum wallet or holding them on KuCoin or Uniswap, it’s time to decide if you want to keep the CAG or are interested in getting equity upside in the company. 

Updated terms and conditions

Let’s recap the important changes in the terms:

  • The expiration date for the CNG tokens is postponed to 31.03.2022 at the latest. Originally, it was planned to convert CNG to shares by the end of 2020. This change is proposed to get investors more acquainted with Change shares already trading on Funderbeam and provide a smooth transition time from convertible notes to shares. 
  • There will be a share capital increase before the CNG expiration date from 21,995 € to 79,184 € by way of bonus issue on the account of share premium, and as a result, the nominal value of issued shares will increase in proportion. For you, as a share investor on the Funderbeam platform, this means that the number of share units you hold after the issuance will increase about 3.6 (79,184 / 21,995) times and the value of your shares stays the same.
  • The minimum amount of CNG tokens that can be converted to shares of Change Group is 100 CNG tokens and all the CNG token amounts are always rounded down to the nearest ten. The ratio of 1:1000 remains unchanged. This means that 1000 CNG tokens are equal to one share with a nominal value of 1 € and you can become a shareholder with a minimum of 100 CNG. The minimum amount was lowered to 100 CNG from the original 1000 CNG to offer the opportunity to become a Change shareholder with a smaller investment.

    An example of this would be the following:

    After the CNG expiration date, investors who own 7918 CNG will get 0.00998939% ownership in the company with the following calculation.

    7918 CNG will be rounded to 7910. Then it is divided with the share ratio (1:1000), 7910 / 1000 = 7.91 to get the share nominal value in EUR. This is then divided by the total issued share capital to get the percentage of the total ownership, 7.91 / 79,184 = 0,00998939%.
  • Investors who swapped CAG tokens for CNG and wish to convert CNG back to CAG are only entitled to this if all of their CNG tokens were swapped by them.
  • CNG will be converted to shares, however, Change can make an exception for CNG holders who own at least 1,000,000 CNG and want to swap back to CAG before the expiration date.

Other updates

In our previous post, we mentioned the upcoming community rewards program. We planned to share the full terms and plan in December 2020. However, this will be postponed to keep the focus on the convertible note to share conversion and avoid adding extra layers of complexity at this time.

We originally planned a program that is designed to reward all CNG holders with additional CAG based on their CNG holding. Due to the regulatory risks, we decided to go back to the drawing board and start putting together the program from the ground up.

Since this type of rewards program has been something our community has been asking for, we’re very motivated to work on this and deliver the best possible solution in our regulatory capacity in 2021. 

To conclude

Make sure you take the time to read and understand the updated terms and conditions. It’s important that we’re all on the same page. 

CAG token swap is ending. If you’re looking to get upside in the company make sure you swap your CAG tokens by 31st of December 2020. CAG tokens will still have a place in the Change ecosystem for buying services from Change.

We will continue to work with the community on the rewards program so we could deliver you the best possible solution and give you a great experience as a Change investor.