Equity-like CNG token is an interim step to fulfill our plan to give our Community an option to become legal shareholders of Change. CNG token provides in essence similar values and benefits as owning our shares, but is built on a different legal model - instead of getting shares directly, you will invest through a tokenized loan contract.
CNG tokens will be issued mainly due to time considerations - the process of converting the CAG token into a security token is expected to be around two years due to heavy regulations in the field. We felt the need to find a temporary solution immediately to show our commitment to our future together and give you certainty about our relationship until the security token will be issued.
The new CNG token is a ERC20 token with equity-like attributes, where investors hold a tokenized loan contract that can be converted into equity of Change. This equity-like token allows the team to choose at the end of each financial year whether to reinvest the earnings in operations and R&D or to distribute these among tokenholders.
In the future, the equity-like CNG token can be converted into Change equity. It’s important to understand that the CNG token is not a security as defined by Estonian Securities Market Act and the issuance and offering is not deemed to be public offering in any case.