Frequently Asked Questions
Can I get a copy of the investment terms and contract?
Yes, as stated above; the terms you agree to are the Convertible Promissory Note Series 2021 dated 2021-07-15.
What is a Convertible Note?
A Convertible Note is a type of investment where the investor is owed the investment amount as debt, it earns interest and converts to equity with a bonus at any of the listed conversion events. It is called “convertible note” because it is a promissory note that converts to equity.
Am I an Accredited Investor?
This is a good faith requirement, since there is no way for Purism to validate your accredited investor status, by investing you are stating you are an accredited investor that is defined as meeting any one of the following: earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year; OR has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence); OR holds in good standing a Series 7, 65 or 82 license; OR any trust, with total assets in excess of $5 million, not formed specifically to purchase the subject securities, whose purchase is directed by a sophisticated person; OR certain entity with total investments in excess of $5 million, not formed to specifically purchase the subject securities; OR any entity in which all of the equity owners are accredited investors.
When do I get my return on investment?
This is considered early stage investment, typically in growing technology companies, whereby you desire to invest early and see all the upside of holding that investment past the conversion event—where you become a shareholder—and into future equity events, such as dividend payments, IPO, or acquisition. This process is typically measured in years, and should not be considered a short-term investment.
Do I have to do anything after investment?
No, one of the easy things about convertible notes is that they are debt instruments that automatically convert into equity at predetermined events. You will be notified—via email—upon any automatic event occurring.
Will I get regular updates?
Yes, Purism posts to its website regular blog posts about company progress, that is the definitive source for updates. In addition, there is a semi-regular text email newsletter for investors sent to a list that you will be automatically subscribed to (and can unsubscribe if desired).
Has there been previous investment?
Purism has grown mostly from revenue, however, Purism announced closing $2.5m in notes in December 2019. This is represented in the Total Investment.
What is the minimum investment?
What is the maximum investment?
What are the funds used for?
We will use the investment funds for additional parts procurement in preparation for large production run of stock, continuing funding of all our freedom respecting revolutionary software development, and new funding for more convergent applications in PureOS for the Librem 5 phone.
Can I share this investment opportunity with my friends or post about it on social media?
Yes, while this is not a public offering, it is an offering to friends, supporters, and their friends and supporters. We will not be offering this to any other groups besides our supporters and customers directly, we also will not be linking to this campaign from our site nor forums, but you are more than welcome to share that in your personal capacity or on your personal social media outlets. We desire to extend the offer—and its potential return—to those that are supportive of our Social Purpose movement and whom know the value that Purism brings.
What is my note worth?
The note is worth the amount you invested, it is debt owed to you. It also earns 3% annually, and upon conversion will earn an additional 8%, at which point you will be a shareholder of Purism, SPC.
Can I sell my note?
Not easily. The best way to look at convertible notes is to consider them long term investment in the future growth of a social purpose company you desire to see grow and reap the future benefits from its success. It is possible to transfer (e.g. sell) the note to other parties but that would be done separately and independently by you, notifying Purism of the legal transfer of ownership.
What percentage (%) of the company do I have?
Convertible notes do not translate to percentage of the company until after conversion (at which time the percentage is calculated), the best way to think about this is that you are getting in at the earliest investment terms, with discounted future ownership percentage, that are better terms than the next level of investment. Only upon conversion does this translate to a shareholder with a percentage that is known.
What is the difference between this and owning a stock?
Stock ownership is later stage investment whereby you own a part of the company. Convertible notes are earlier stage and are valued at the dollar-for-dollar investment put in, plus 3% annual, plus 8% bonus into becoming a shareholder (e.g. owning stock).
What are you using this investment for?
As stated above; We will use the investment funds for additional parts procurement in preparation for large production run of stock, continuing funding of all our freedom respecting revolutionary software development, and new funding for more convergent applications in PureOS for the Librem 5 phone.
Is this investment opportunity available outside the US?
Yes, the convertible note has language to allow any individual to invest.
I’d like to invest, but have a few more questions, can I get those answered?
Yes, to ask questions regarding the terms and conditions of the offering or any additional information necessary email email@example.com