What is an Equity Warrant?
An equity warrant gives the holder the right to buy a company's stock at a set price before a specific date. It's similar to a stock option, but typically has a longer expiration period and can be traded. When exercised, new shares are issued, which can dilute existing shareholders' value.
Equity Warrants
Angel Deal Syndicate, LLC is a collaborative network designed to bring together creators, investors, and innovators. It focuses on creating synergies and shared opportunities within the industry, leveraging collective expertise and resources to drive growth and success. Through strategic partnerships and a commitment to innovation, ADS, LLC aims to accelerate the development and impact of its members’ projects.
ADS, LLC is led by Mr. Val Kleyman. Mr. Kleyman has 15+ years of experience in real estate, blockchain/web3, and hospitality. He achieved a 32x ROIC on properties bought during the 2012-2016 downturn. Specializing in market cycle investing, he supports founders in growth, tackling challenges, and structuring fair deals.
Founders are visionaries aiming to change the world and create new markets. ADS, LLC helps through relationships, investing from pre-seed to Pre-IPO. We support founders at every stage with funding from accredited LPs, unlocking crucial dormant equity.
Our targeted deal flow enables LPs to make informed decisions about market trends early on. We operate on first principles, acquiring value during periods of low valuations and uncertainty.
Background
DISCLAIMER: This is not a proposal to sell securities or provide any advice, is informational and educational in nature and is not to be construed as any sort of advice. Any person, entity, or organization must first be qualified by the company and read our entire offering documents and attest to reading and fully understanding such documents. AdValorem Syndicate and its affiliates are not licensed securities dealers or brokers and as such, do not hold themselves to be. This presentation should be construed as informational and not as an advertisement soliciting for any particular purpose. Any securities herein discussed have not been registered or approved by any securities regulatory agency in accordance with the Securities Filing of 1933 or any state securities laws.
In March 2023, Newchip Accelerator filed for bankruptcy protection in Texas, and, in April 2024, the bankruptcy trustee began liquidating the assets of the estate, mainly warrant agreements, entered into by hundreds and hundreds of start-ups from around the world. In a court approved auction in April 2024, Angel Deal Syndicate, LLC purchased and acceded to Newchip’s rights thereunder.
Many of the companies who executed similar agreements with were surprised to learn that their warrant agreements were still in force. These companies often believed that either the warrants had expired after the initial two-year warrant period or were invalid because of Newchip’s breach of certain related customer agreements. Some companies objected to the resale of their warrant agreements with the bankruptcy court along these lines.
In an order dated February 1, 2024, the court broadly rejected all of these objections. Among other things, the court ruled both that the Newchip warrant agreements are severable from the related Newchip customer agreements (i.e. that a breach of the latter does not impact the validity of the former), and that, unless an issuer can provide “sufficient documentation to demonstrate that it has satisfied all requisite reporting obligations (also overruled) under the Warrant,” the initial eighteen month coverage period is presumed to be extended to ten years.
Investment Rights
In general, under Section 1 of the Equity Warrant, Angel Deal Syndicate, LLC has the right, during the coverage period, to make an initial investment of up to $250,000 (the “Initial Coverage”) and, subsequently, to make a follow-on investment of up to twice the amount of the Initial Coverage which the holder actually exercises (e.g., if a holder exercises $50,000 of Initial Coverage, it would then have the right to exercise up to $100,000 of Follow On Coverage; if it exercised $250,000 of Initial Coverage, it would then have $500,000 of Follow On Coverage) (the “Follow On Coverage”).
The specific mechanism for determining the Initial Coverage exercise price varies slightly depending on if the issuer had an open financing round as of the Warrant Date or not, and, if it did, to what extent that open round was subscribed. If there was no open round on the Warrant Date, the pricing is determined by applying a discount to the next round after the Warrant Date. The Follow On Coverage exercise price is determined by reference to the terms of subsequent financing rounds.
Intention
About ADS, LLC
ADS,LLC considers itself stakeholder of warrant related rights and recognizes these rights are only valuable if the companies continues to be successful. As investors, we think litigation would be a waste of time and money that could more valuably be deployed into these businesses.
Litigation can be costly, lengthy and will naturally errode any potential investor interest in writing a check. With uncertainty of litigation hanging over these companies, we seek to resolve and empower companies to go on to raise subsequent rounds clear of any equity warrant related complexities.
We want to help our companies avoid that unpleasantness. Instead of litigating these rights, we believe positive collaboration from both parties coupled with our expertise and willingness to reinvest back into the businesses at par have created a perfect storm of opportunities for ADS,LLC and our companies.
This is an unusual opportunity. Rarely found. ADS, LLC and it's network of investors believe if properly executed it could be a huge WIN for all parties.
By collaborating with ADS, LLC, we'll convert NewChip's failure into equitable financing to be used at par value to todays valuation. Hence, we've developed an investment program encouraging strategic partners interested in helping our business grow. We are NOT able to resell the equity warrants prior to them being exersized.
We encourage companies on the list below contact us and begin an information exchange.
If you are an active accredited investor seeking to become a strategic partner in any of the companies, please complete the co-investor application and join our syndicate.
ADS has rights it is determined see enforced.
Owned Equity Warrants
All rights reserved. Copyright 2024 ©
Angel Deal Syndicate, LLC
# | Company | Website | Industry |
---|---|---|---|
1 | FairAdsAPP Inc. | fairadsapp.com | Advertising |
2 | Farmfluence | farmfluence.co | Agriculture |
3 | Everviolet, Inc. | everviolet.com | Apparel Tech |
4 | For Days | fordays.com | Apparel Tech |
5 | Mys Tyler Tech Pty Ltd | mys-tyler.com | Apparel Tech |
6 | Zoombang | zoombang.com | Apparel Tech |
7 | Drone AI Services | droneservices.com.ar | AR/VR Metaverse |
8 | Mintus Trading Limited | mintus.com | Art Tech |
9 | Cutting Edge Capital Pty Ltd. | cuttingedgecapital.com.au | Artificial Intelligence |
10 | Datatorch | datatorch.io | Artificial Intelligence |
11 | DecisionFacts | decisionfacts.ai | Artificial Intelligence |
12 | Taranis SA | taranis.net | Artificial Intelligence |
13 | Dropslab Technologies | dropslab.com | Augmented Reality |
14 | ASX | iflyasx.com | Aviation |
15 | Dr. Stoner's Herb Infused Spirits | drstoners.com | Beverages |
16 | Redrock Biometrics | redrockbiometrics.com | Biometrics |
17 | BoardiGo | boardigo.com | Board Management |
18 | INNOVA ICT SRL | guglielmirent.it | Car Rental Co |
19 | RideAlike | ridealike.com | Car Sharing |
20 | Ace Green Recycling | acegreenrecycling.com | Clean Tech |
21 | Charge Zone | chargezone.co.in | Clean Tech |
22 | Emotion S.R.L. | emotion-team.com | Clean Tech |
23 | Flower Turbines | flowerturbines.com | Clean Tech |
24 | Greenger Powersports | greengerpowersports.com | Clean Tech |
25 | Metafoodx | metafoodx.com | Clean Tech |
26 | Solaires Enterprises | solaires.net | Clean Tech |
27 | Soteria Battery (Acqrd by Voltaplex) | soteriabig.com | Clean Tech |
28 | Vroom Solar Inc. | vroomsolar.com | Clean Tech |
29 | Phase 01 | phase1.nl | Clinics/Outpatient |
30 | Crypto Dispensers | cryptodispensers.com | Crypto/Bitcoin ATMs |
31 | Esca.Finance | esca.finance | Currency/Forex |
32 | Atmosec (Acquired by Checkpoint) | atmosec.com | Cyber Security |
33 | Mesh Security | mesh.security | Cyber Security |
34 | Bricks Inc. | bricks.tools | Display Tech |
35 | Slipbot Inc. | doxci.ai | Document Processing |
36 | Earth Cubs | earthcubs.com | Ed Tech |
37 | Geego Kids Ltd. | geegokids.com | Ed Tech |
38 | Circadian Risk Inc. | circadianrisk.com | Enterprise Risk Mgmt |
39 | Invert Inc. | invert.world | Environmental (B2B) |
40 | Equivesto Inc. | equivesto.com | Equity Crowdfunding |
41 | Evolve Credit | evolvecredit.co | FinTech |
42 | Premiumreal Technologies | withpremiumreal.com | FinTech |
43 | Qdeck | qdeck.com | FinTech |
44 | TradersPost, Inc. | traderspost.io | FinTech |
45 | Myles Comfort Foods | mylescomfortfoods.com | Frozen Food |
46 | Giftcash (Acquired by Raise) | giftcash.com | Gift Card |
47 | Abitü Suplementos | abitu.mx | Health Tech |
48 | HUB Healthcare | hub.healthcare | Health Tech |
49 | Pneumeric, Inc. | pneumeric-medical.com | Health Tech |
50 | Rocket Wellness Inc. | novobeing.com | Health Tech |
51 | Cmax Systems | cmaxsystem.com | Housing |
52 | Laborjack | laborjack.com | HR Tech |
53 | OutScout | outscout.io | HR Tech |
54 | Restaurant World | restworld.it | HR Tech |
55 | Dr B. Dental Solutions | drbdentalsolutions.com | Hygiene (Dental) |
56 | Egal Pads, Inc. | padsonaroll.com | Hygiene (Fem Tech) |
57 | Click Analytic | clickanalytic.com | Influencer Marketing |
58 | Global Leadership (GELP) | gelp.ca | Leadership Training |
59 | 11 Sight | 11sight.com | Mar Tech |
60 | BeatConnect | beatconnect.com | Music Tech |
61 | Cycurid Technologies Ltd. | cycurid.com | Network Management |
62 | Dosei Ltd. | uforika.io | NFT Project |
63 | Centbee | centbee.com | Payment Processing |
64 | Congrify Srl | congrify.com | Payment Processing |
65 | Glover | gloverapp.co | Payment Processing |
66 | PayNest Fintech Ltd | paynest.ae | Payment Processing |
67 | B Generous | bgenerous.com | Philanthropic Services |
68 | Merchandise, Inc. | merchadise.com | Print on Demand |
69 | Cleanster | cleanster.com | Prop Tech |
70 | DepositLink | depositlink.com | Prop Tech |
71 | Red Leader Technologies | redleadertech.com | Robotics |
72 | Irvinei Corporation | irvinei.com | Smart Home Tech |
73 | Nine | meetnine.com | Social & Dating |
74 | Guardian Baseball LLC | guardianbaseball.com | Sporting Goods |
75 | Dispatch IT LLC | dispatch-it.us | Supply Chain Tech |
76 | Gomove Technologies | gomove.ai | Supply Chain Tech |
77 | Tachyon | tachyonhub.com | Supply Chain Tech |
78 | Kleanbus Limited | kleandrive.earth | ThinkTank |
79 | Campy B.V. | campy.app | Travel Tech |
80 | 6 Degrees | 6degrees.tech/technology | Wearable AI Tech |
81 | Eze Wholesale | ezewholesale.com | Wholesale B2B |
In addition to the below, we also own 128 additional warrants.
To discuss below 81 opportunities email info@advalorem.io or complete this form.