Frequently Asked Questions

An Equity Line of Credit is a financial tool that allows publicly traded companies to access funds based on the value of their equity. It provides flexibility in borrowing against equity without immediately issuing new shares or convertible debt.

An ELOC enables a company to draw funds up to a predetermined limit over a specified period. The amount available for borrowing is based on the market value of the company's publicly traded shares used as collateral.

• Flexibility
• Minimized dilution
• Cost-effective
• Speed

Publicly traded companies looking to manage working capital, fund growth opportunities, or navigate seasonal fluctuations in cash flow can benefit from an ELOC. It provides a strategic financing option without immediate shareholder dilution.

The borrowing limit is typically calculated based on a percentage of the market value of the company's publicly traded shares used as collateral. Lenders may also consider factors such as the company's financial performance, market conditions, and risk profile.

Terms may vary depending on the lender and specific agreement, but commonly include interest rates, repayment terms, any fees associated with unused credit, and conditions for accessing funds.

While ELOCs offer flexibility and strategic advantages, companies should consider potential risks such as fluctuations in stock price affecting borrowing capacity, interest rate changes, and compliance with credit agreement terms.

ELOCs offer distinct advantages over traditional convertible debt or equity issuance by providing more control over when and how funds are accessed, minimizing immediate dilution, and potentially reducing financing costs.

BORRO—short for Beneficial Ownership Retained Repurchase Option—is a hybrid equity REPO/SWAP strategy and Liqueous's flagship offering. It provides liquidity solutions tailored to shareholders, including officers, directors, and control affiliates, holding concentrated blocks of common stock.

The BORRO framework separates legal and beneficial ownership, enabling shareholders to retain voting rights and dividend entitlements while accessing liquidity. This innovative structure allows shareholders to unlock the value of their holdings without losing ownership benefits during the transaction term.

BORRO operates by transferring the legal title of pledged shares to Liqueous while shareholders retain beneficial ownership. This arrangement enables Liqueous to use sophisticated derivative strategies to manage risk effectively.

Depending on client needs and market conditions, strategies may involve over-the-counter (OTC) derivatives, CBOE Flex Options with European settlement, listed options, or correlation analysis to create diversified stock baskets. In cases where traditional instruments are unavailable, Liqueous tailors alternative solutions to accommodate different types of securities.

Securities with listed options are typically required for hedging purposes. However, when correlation analysis identifies viable alternatives, Liqueous can often include a broader range of securities. The underwriting system evaluates each case individually to determine the best approach. Clients are encouraged to reach out to Liqueous for a personalized assessment of eligibility.

BORRO offers numerous advantages, including:

• Liquidity Access: Enables shareholders to access liquidity when conventional margin solutions are unavailable.
• Flexibility: Provides options for early repayment, deferral of payments to maturity, or additional equity drawdowns in case of asset appreciation.
• Retention of Ownership Rights: Shareholders maintain voting and dividend rights throughout the transaction period.
• Customizable Terms: Tailored solutions designed to meet individual liquidity needs with terms ranging from short to extended durations.
• Dynamic Utility: Ideal for institutional investors, public company executives, and those managing significant equity positions.

BORRO is structured to offer flexibility, with most agreements allowing for interest-only payments on a monthly or quarterly basis. Alternatively, all payments can be deferred until the end of the term. Shareholders experiencing challenges are encouraged to communicate with Liqueous to explore available options for adjusting their agreement.

BORRO agreements are highly customizable. Terms can range from short-term arrangements (e.g., 30-day REPOs) to multi-year agreements (e.g., 5 years), during which shareholders maintain beneficial ownership. Agreements often include provisions for drawing additional equity or early fulfillment at defined intervals.

BORRO employs rigorous security measures to safeguard pledged assets throughout the loan term. These measures may include secure storage and insurance coverage for the collateral.

For example, a shareholder might enter a two-year BORRO arrangement with the option to access additional liquidity or make repayments every six months. This flexibility ensures BORRO meets both immediate liquidity requirements and long-term financial goals.

For example, a shareholder might enter a two-year BORRO arrangement with the option to access additional liquidity or make repayments every six months. This flexibility ensures BORRO meets both immediate liquidity requirements and long-term financial goals.

Liqueous offers access to third-party providers of surety bonds and similar risk-mitigation solutions to address counterparty concerns. These products cover varying percentages of counterparty risk. Additionally, Liqueous is developing an automated underwriting system to streamline access to risk-mitigation options.

Liqueous may liquidate the pledged securities if obligations are not met to recover its position. However, the company prioritizes collaborative solutions to help shareholders avoid these scenarios. Open communication is encouraged to explore alternative arrangements in the event of financial challenges.

Yes, BORRO is available in select global markets, subject to local regulations. Liqueous’s automated underwriting system integrates over 50 international exchanges, although terms and conditions may vary based on jurisdiction. Prospective clients are advised to consult with Liqueous representatives for detailed information on availability and specifications in their region.

No, BORRO is not available to non-accredited investors. Liqueous exclusively transacts with hedge funds, family offices, qualified institutions, and institutional investors. This ensures that transactions align with regulatory requirements and the sophisticated nature of the strategy.

Yes, BORRO is highly flexible and can accommodate short-term and long-term liquidity requirements. Terms can range from as short as 30 days to multi-year agreements, depending on the shareholder's specific needs and preferences.

Dividends accrue in the initial pledged portfolio, which, depending on the structure, is equity that can become available in an additional equity draw or otherwise will be included in the maturity date portfolio, which will become accessible upon exercising a repurchase.

The ESFL integrates stock options into a dynamic line of credit system designed for publicly traded companies. It provides executives and key personnel with flexible access to capital while linking financial benefits directly to company performance.

Companies adopt a stock incentive plan that allocates stock options into a custodial account. These options secure low-interest lines of credit administered through liqueous advanced backend portal. Executives can use these credit lines for personal financial planning and expenditures, excluding the purchase of margin securities.

• Financial flexibility
• Alignment with company performance
• Low-barrier access

liqueous platform allows companies to easily manage and allocate credit approvals among eligible employees. This includes issuing, replacing, and removing credit allocations efficiently through their secure backend portal.

• Secure and user-friendly: The portal offers robust encryption and real-time management tools.
• Comprehensive tracking and reporting: Monitor usage and ensure compliance with detailed tracking and reporting capabilities.

Yes, the ESFL is specifically designed for publicly traded companies that wish to offer enhanced benefits to their executives and key personnel through stock-based incentives.

Eligibility typically includes executives, board members, and other key employees designated by the company's stock incentive plan. Specific eligibility details can be discussed with liqueous during the consultation process.

Companies interested in implementing the ESFL can begin by contacting liqueous through their website or directly through their corporate services team. The application process involves assessing the company's needs and aligning them with the features of the ESFL.

liqueous ensures that the ESFL program complies with relevant regulatory requirements and provides guidance on managing stock-based incentives within legal frameworks.

Businesses can apply for BORRO's service online through the company's website or by contacting BORRO directly. The application process typically involves submitting information about the collateral, the desired loan amount, and the borrower's financial background.

A Private Block Trade refers to the discreet execution of a large volume of securities outside of the open market, typically between institutional shareholders or large-scale investors. liqueous specializes in managing these trades to minimize market impact and maximize execution efficiency.

• Discreet and efficient execution
• Expert market navigation
• Customized solutions

Private Block Trades are ideal for institutional shareholders and large-scale investors looking to reposition or liquidate significant stock positions without causing market disruptions or impacting prices adversely.

liqueous employs a strategic approach to execute Private Block Trades discreetly and efficiently. This includes leveraging market expertise, executing trades at opportune times, and ensuring minimal impact on market prices.

Private Block Trades can involve various types of securities, including stocks, bonds, mutual fund shares, and other financial instruments held in large volumes by institutional investors.

• Privacy and confidentiality
• Minimal market impact
• Customization

liqueous adheres to all relevant regulatory requirements governing Private Block Trades, ensuring compliance and transparency throughout the transaction process.

Interested parties can initiate contact with liqueous through our website or by directly contacting our institutional trading desk. Our team provides personalized consultations to discuss trade requirements, execution strategies, and potential outcomes.

liqueous offers ongoing support and post-trade analysis to monitor the impact and effectiveness of executed trades. We assist clients in evaluating outcomes and optimizing future trading strategies as needed.

We employ rigorous security measures and confidentiality protocols to safeguard the privacy and interests of our clients throughout the Private Block Trade process. Transactions are conducted securely and with utmost discretion.

Venture debt offers a lower cost and less dilutive alternative to equity financing, providing growth-oriented companies with capital while minimizing ownership dilution.

Growth-oriented companies looking to fund strategic initiatives such as expansion, mergers, and acquisitions without significantly diluting ownership.

Bridge transactions provide short-term financing to companies needing immediate capital. This can help bridge the gap between major financing rounds, ensuring continuous operations and progress on strategic goals.

Toxic debt refinancing involves replacing high-risk, unfavorable debt with more manageable, lower-risk financing options. This can improve a company's financial health and stability.

liqueous offers equity investments tailored to support the strategic growth of companies, providing the capital needed for expansion and other critical business initiatives.

liqueous works closely with each client to understand their unique needs and circumstances, developing customized financial strategies that align with their specific goals and challenges.

liqueous boasts a seasoned team with extensive experience and knowledge in various financial sectors, ensuring clients receive expert advice and support.

By providing tailored financial solutions, expert advice, and committed support, liqueous helps companies unlock their potential and achieve their growth goals.

Companies benefit from liqueous expertise, customized financial strategies, and a strong commitment to their success, ensuring they have the resources and support needed to thrive.

Businesses can initiate the process by contacting liqueous directly through their website or customer service channels to discuss their specific needs and explore suitable financial solutions.

liqueous offers ongoing support and guidance for administering the ESFL, including training on the use of their backend portal, monitoring program effectiveness, and adjusting credit allocations as needed.

You can access funds quickly based on the market value of your securities, enabling you to meet financial needs without selling your investments.

SBLOCs offer customizable repayment options and competitive interest rates tailored to your financial situation and goals, providing a personalized and flexible borrowing experience.

By borrowing against your securities, you maintain your investment positions and potential for returns, ensuring your long-term financial strategies remain intact while accessing the funds you need.

liqueous employs robust security measures, including encrypted transactions and stringent data protections, to ensure the highest level of security for your financial information.

liqueous provides a user-friendly, tech-driven dashboard that allows you to manage your SBLOC with real-time updates and comprehensive management tools, making it easy to track and control your credit line.

The application process is simple and streamlined, digitally enabled to allow for quick processing and approval. You can apply through liqueous online platform and receive prompt assistance throughout the process.

Eligibility typically includes individuals or entities with a diversified investment portfolio. Specific eligibility requirements can be discussed with liqueous during the application process.

A variety of securities can be used as collateral, including stocks, bonds, mutual funds, and other liquid investments. The exact types of acceptable collateral will be determined during the application process.

Yes, the funds from an SBLOC can be used for various purposes, including personal expenditures, business investments, or other financial needs, excluding the purchase of margin securities.

liqueous adheres to strict confidentiality protocols and data protection measures to safeguard your financial information throughout the SBLOC process.

liqueous offers ongoing support and guidance for administering the ESFL, including training on the use of their backend portal, monitoring program effectiveness, and adjusting credit allocations as needed.