Can I adjust the number of shares I've issued later?
While there are a number of ways a corporation can adjust the stock it has granted to a shareholder, adjustments can potentially have considerable tax implications on all shareholders. Additionally, authorizing more shares requires amending the Certificate of Incorporation. This process requires shareholder approval and an additional filing fee with the State of Delaware.
Startups generally try to do everything they can now to avoid this process until they are closing their preferred stock financing round. Gust Launch can help companies repurchase shares that are subject to vesting, but all other adjustments will have to be made outside of Gust Launch.
Last updated on April 2, 2019