Internal Trading Platform for MyWorld Shares – A Trading Platform Without a Market?
The recent announcement by MyWorld to establish an internal trading platform for its preferred registered shares raises serious questions about the utility and feasibility of this endeavor. In an email to marketers, the company made it clear that the acquired shares cannot be traded on public markets like NASDAQ, but will only be accessible on an internal platform for registered participants after an 18-month lock-up period. What may initially seem standard, upon closer examination, reveals itself as a potential flop offering little real value to marketers.
Translation (image on the right)
“Hello XXXXXXX,
Thank you for your enquiry.
myWorld International AG is not a listed company and therefore the registered preference shares are not listed or traded on a public stock portal or on an international stock exchange (e.g. New York Stock Market, Yahoo Finance, Bloomberg, Google etc.). The company is not ‘listed’.
The received registered preference shares are subject to a blocking period. The personal registered preference shares in myWorld International AG that a Marketer receives are subject to a blocking period that ends 18 months after the Marketer receives the registered preference shares.
The registered preference shares cannot be sold before the end of this lock-up period. This information can be found in the document ‘myWorld International Share Program Fact Sheet’, which is available in the Lyconet Media Center and can be read by every Marketer.
Due to the restricted transferability of the registered preference shares, a sale is only possible with the consent of myWor1d International AG. After the 18-month lock-up period has expired, myWorld will release an internal trading platform for the registered preference shares and provide the process for using the platform.
Shareholders will be able to trade shares internally on the new platform. All transactions require the approval of myWorld International AG and will only be carried out for a specific closed group.
You can find all information about the myWorld International Share Program (incl. registered preference shares) in the document ‘myWorld International Share Program Fact Sheet’.
This is available in the Lyconet Media Center and can be read by every Marketer. If you have any additional questions about the preferred shares of myWorld International AG, please also take a look at the FAQ section on the ~, where we have already compiled the most important answers for you.
Kind regards,
Your myWorld Team“
A Trading Platform – For Whom?
Why would anyone in their right mind buy a restricted registered share on an internal trading platform or acquire it from another marketer? It seems utterly pointless. It is unlikely that marketers or investors will show significant interest in shares that can only be traded within a closed system where they also have minimal voting rights. Without a public market and realistic prospects for actual liquidity, the establishment of this platform appears almost nonsensical. In such a closed system, the restricted tradability is a significant disadvantage for anyone seeking flexibility in their investments, as any sale or transfer is only possible with the company’s approval.
The planned establishment of an internal trading platform by MyWorld raises fundamental questions: Who is actually supposed to buy these shares? Since the platform is accessible exclusively to registered participants, the pool of potential buyers is severely limited. Without the ability to trade the shares on a public market, liquidity remains significantly constrained.
A Dubious Offering Without Apparent Demand
Additionally, marketers gain no voting rights in corporate decisions by holding the preferred registered shares. Without voting power and with limited tradability, it remains questionable what actual value these shares should hold for marketers. The MyWorld share seems to be little more than a symbolic gesture.
Regulatory Risks and Legal Pitfalls
Another challenge is the regulatory hurdles associated with operating an internal trading platform. To enable the trading of non-publicly listed shares, various legal requirements must be met, which can vary depending on the jurisdiction. These include regulations on the registration, monitoring, and documentation of trading activities. MyWorld bears a special responsibility to strictly comply with the legal framework to protect both the marketers and the company itself from legal risks.
The risk of insider trading is particularly problematic, as the platform is only accessible to a closed group of marketers. There is a danger that internal information could be exploited to gain unfair advantages. Strict control mechanisms must be established to prevent any suspicion of insider trading – a considerable administrative effort, but essential to avoid potential sanctions.
Conclusion: A Platform Without Substance
The idea of an internal trading platform for preferred registered shares may sound innovative, but the many uncertainties and limitations cast a dark shadow over this project. For marketers seeking value-enhancing investments, these shares offer little incentive. It seems rather as though MyWorld is trying to create an illusion of value without a functioning market. Ultimately, the platform could prove to be a castle in the air – with a high risk that marketers will be the real losers.
And as always, those affected are welcome to comment on this, or if someone has more or different information, they are welcome to share it with us. We are not interested in making false claims and our primary goal remains the provision of complete documentation.
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