♻️ Private Stock Repurchase Plan (PSRP)
The PSRP is Twisted Artists Guild’s internal stock liquidity mechanism—designed to provide fair value to shareholders, reward long-term participation, and preserve artist ownership. Because TAG stock is intentionally private, this program ensures that share value can scale with platform success—without ever surrendering governance to external markets.
🧭 Why It Exists
As a cooperative, TAG doesn’t intend to IPO or sell out to venture capital. Instead, we’ve built an internal buyback system to:
- Ensure shareholder liquidity
- Maintain real-time stock valuation
- Protect voting structure from speculative pressure
- Reflect platform health in equity performance
The PSRP is how we turn adjusted profit into mobility—redistributing value through dividends, retained earnings, and stock repurchases.
💡 Program Highlights
Funded by Profits
Operates only once the Guild generates and retains profits. A liquid account is filled up to 15% of eligible payable shares, enabling fast fulfillment of requests.
Quarterly Limit
Up to 15% of vested shares eligible for repurchase each quarter—ensuring price stability and financial discipline.
Real-Time Valuation
Each buyback influences the share price. A 5% repurchase reduces the stock price by 5%; a filled repurchase account with leftover funds will raise the price accordingly.
Price Range
Share value fluctuates between $5 and $25. At the top, shares automatically split 5-for-1, resetting the price and requiring a formal charter update.
📊 Repurchase Mechanics
Application
Shareholders submit requests to sell eligible shares within the 15% quarterly cap.
Valuation & Status
Real-time pricing and fund availability shown on the buyback form. Requests exceeding available funds initiate a FIFO waitlist, allowing the user to specify a stop-limit sale price.
Offer
If funds are available, approval is instant. If waitlisted, orders are fulfilled when capital returns or canceled if price dips below user threshold.
Payment
Processed via liquid accounts and distributed via applicable financial platforms. Promotional programs may offer gift cards with bonus credit (e.g., +10%) as alternate buyback disbursement options.
📋 Eligibility & Share Class Rules
- Common Stock (Artists): Can only be sold by the artist or their estate. Non-transferable.
- Preferred Stock (Investors): Vested shares may be transferred to vetted third parties.
- Restricted Stock (Employees): Subject to a 4-year vesting + 5-year holding period. Eligible for buyback after hold expires; follows common stock rules thereafter.
- Conversion Paths: Future programs will allow conversion from Common/Restricted to Preferred—enabling dividend access, gifting, or estate planning at the cost of governance power.
⏳ Timing & Waitlist Logic
- Requests >15% of eligible shares are rejected.
- Large requests under the cap may still queue on waitlist.
- If a quarter’s buyback fund is depleted, the program pauses until replenished.
- The Board may override pauses with majority consent if circumstances justify early restart (e.g., mass vesting shifts).
- Disbursement cycles include a buffer period for financial processing.
🔐 Board & Governance Disclosures
- Every board member, employee, and artist member earns Common Stock upon qualifying (first fee-earning sale, hire, or board appointment).
- Board/staff vote only with one share’s weight while actively employed. Upon departure, full voting power resumes.
- Staff may still be artist members and participate in competitions earning stock awards.
- Board will avoid appearance of conflict but support balanced dual participation as both employees and creatives.
📈 Long-Term Liquidity Roadmap
- Restricted Board shares (issued at Guild founding) unlock slowly:
- Begin eligibility in Year 9
- Repurchase limit increases quarterly for four years
- Vesting graph (to be visualized) will show forecasted buyback capacity growth
- Buybacks will only include fully vested and eligible stocks per class