FEX Shares FAQ

When did FEX go public?

FEX closed its Regulation A public offering, on May 5, 2021. The company issued 2,733,229 shares of its Class A common stock and raised $75 million in gross proceeds (the maximum amount qualified under the company’s offering circular). We have chosen to use the Algorand blockchain to issue tokens with the EXIT symbol (“EXIT tokens”). EXIT tokens are not shares of Class A common stock; rather, they are digital representations on the Algorand blockchain of the number of shares purchased and held by a stockholder. EXIT tokens will be sent by Securitize, the transfer agent for your shares, directly to your FEX wallet.

Why might I be interested in being part of FEXs’ growth?

FEX enables consumers to manage many forms of cryptocurrency in a non-custodial interface. With cryptocurrency reaching all-time highs, we are taking action to accelerate our growth. FEX is already performing well. Going forward, we plan to invest even more in the expansion of our platform, including on product, security, and customer service teams, while accelerating growth by significantly increasing our marketing efforts to attract additional users to our platform. We are excited about our future.

Can I buy or trade shares of FEX’ Class A common stock right now?

No. We currently intend to make our Class A common stock available for trading on several alternative trading systems (ATS), including the tZERO. We’ll keep you updated via press releases, social media, and splash pages in the Wallet and on the website when secondary trading becomes available.

What is the difference between a share and a token?

EXIT tokens are digital representations of FEX shares. Thus they are two ways of referring to the same thing.

When will the EXIT tokens I purchased be distributed?

We’re working with tZERO to get all of the FEX shares ready for trading on the secondary market. We anticipate that this process should be completed in August 2021. We will send another email (and post on the website & app) when we have a firm date. Prior to opening secondary market trading, FEX shares will remain priced at $27.42 and will be visible in your FEX wallet, like any other digital asset in your portfolio.

What is Securitize?

Securitize, a Delaware corporation, is our transfer agent registered with the SEC. More information about Securitize can be found here.

Why do I need to engage in KYC to participate?

We are required to have a transfer agent and they are required to have KYC.

How do I delete my KYC?

The fastest way to make a request to delete your KYC is via the Securitize widget. To use, please:

Head to the http://id.securitize.io/ website
Open the widget on the bottom right-hand corner
Fill in your details
Choose FEX as Company/ Issuer Name
Choose Account Deletion under Type of Issue

Where will the shares trade?

We’re working with our partners Securitize and tZERO to get all of the FEX shares ready for trading on the secondary market. We anticipate that this process should be completed in August 2021. We will send another email (and post on the website & app) when we have a firm date for the launch. Prior to opening secondary market trading, FEX shares will remain priced at $27.42 and will be visible in your FEX wallet, like any other digital asset in your portfolio.

I am located internationally. Can I buy?

We’re exploring partnerships with other entities, such as tZERO, that could potentially make FEX shares available for those in jurisdictions outside of the USA.

How do I change my address on my Investment Agreement?

Changes of address need to be processed by the Transfer Agent Securitize. There are two methods. You can email Investor Support support@securitize-investor.zendesk.com; however, the support widget through the app may be faster at https://id.securitize.io/#/login

How does FEX make money?

We derive our revenues from API integration fees that we charge to third parties who develop applications that our customers can access from the FEX Wallet through an API.

How can I learn more about the company and your business model?

FEX is the maker of the FEX Wallet, which provides an easy-to-use interface that enables our customers to manage their crypto assets on their desktop computers and mobile phones or transfer their assets to physical storage devices such as Trezor for added security.

The FEX Wallet is non-custodial, meaning that our customers’ private keys are encrypted locally on their own devices and FEX can never access or take control of our customers’ funds. We derive our revenues from API fees that we charge to third parties who develop applications that our customers can access from the FEX Wallet through an API.

Our desktop platform was first released in December 2015 to address an underserved market opportunity by allowing customers to access advanced wallet technology on the desktop. Since the creation of the FEX Wallet, we estimate that approximately 1.25 million customers have funded wallets across our desktop and mobile platforms.

You can learn more about our company and its products by reviewing our Regulation A offering circular that we have publicly filed with the SEC here, this presentation, or by going to our website here or our YouTube channel.

Where can I find your financial statements?

Bitcoin is going gangbusters. What happens to you when Bitcoin drops?

The FEX Wallet enables our customers to manage multiple crypto assets on their desktop computers and mobile phones or transfer their assets to physical storage devices such as Trezor for added security.

How do I trade my shares?

What is your privacy policy? What is Securitize’s privacy policy?

Here are the privacy policies for FEX and Securitize.

What happens if I already have a tZERO account?

If you already have a tZERO account then you needn’t do anything at this moment. You should be able to trade FEX shares on tZERO using your account when they become available in August 2021.

Have you chosen your blockchain? Which one?

We have chosen to use the Algorand blockchain. You can read more here.

Why did you use Algorand?

FEX common stock tokens (EXIT) will be released on Algorand.

While Algorand is certainly not the only blockchain that we could have used, we found it to be the one that best aligned with our goals at this time.

If you have already invested in EXIT, you’ll soon be able to claim these tokens directly inside your FEX wallet.

How many shares are outstanding?

As stated in the offering circular that was included as part of the offering statement qualified by the SEC on April 8, 2021, on December 31, 2020, FEX had 20,012 Class B shares outstanding. Upon the closing of FEX’s offering of shares of Class A common stock on 5th May 2021, FEX issued 2,733,229 shares of Class A common stocks.

What is the current valuation of the company?

For information regarding the valuation of FEX, please see the investor presentation on slide 32. In addition, you can learn more about our company and its products by reviewing our Regulation A offering circular that we have publicly filed with the SEC here, our 3/12/21 webcast replay, or by going to our website here or our YouTube channel.

Can I sell FEX shares back to FEX?

No.

Can I resell my shares to another shareholder?

We currently intend to make our Class A common stock available for trading on several alternative trading systems (ATS), including the tZERO. This will facilitate and be the easiest way to sell shares. We’ll keep you updated via press releases, social media, and splash pages in the Wallet.
That said, you may resell your shares to other individuals, subject to securities laws. Sales not made on the tZERO platform must be processed by Securitize, our transfer agent.

Why am I seeing “FEX Shares Unavailable”?

If you are seeing this message, it is likely because you are not running the most up-to-date version of FEX. Make sure you have updated your wallet to the latest version.

If you are still unable to access the Shares Application, it is likely due to essential maintenance which required that we take the App offline temporarily. Rest assured the Shares App will return soon, better, faster, and stronger!

Where can I find more information about Securitize?

Securitize is a Delaware corporation that is registered as a transfer agent with the SEC. More information about Securitize can be found HERE.

How does FEX comply with OFAC sanctions requirements?

FEX does not permit its services to be used by people or entities located in sanctioned countries or who are on the OFAC lists or other applicable restricted party lists. FEX is committed to complying fully with all applicable laws and regulations related to export controls and trade sanctions. FEX has appointed a Sanctions Compliance Officer, who oversees the sanctions compliance program. FEX has implemented geo-IP blocking technology to block downloads of the FEX Wallet from the FEX.com website by IP addresses associated with sanctioned countries, including Iran, Cuba, and North Korea and the Crimea region of Ukraine. FEX screens its employees, independent contractors, and other third-party business partners against the OFAC Lists and other applicable restricted party lists. Support service representatives are prohibited from engaging in any communications with individuals or entities determined to be potentially identified on a sanctions list maintained by OFAC.

How can I ask more questions?

Questions? Need more assistance? Send us emails – we promise quick human help!

Wallet questions should be directed to support@FEX com.
Verification and transfer agent questions should be directed to Securitize using the support widget at https://id.securitize.io/ Choose “FEX” and your topic.
Investor questions should be directed to investors@FEX.com

Forward-looking Statements

This communication contains forward-looking statements that are based on our beliefs and assumptions and on information currently available to us. In some cases, you can identify forward-looking statements by the following words: “will,” “expect,” “would,” “intend,” “believe,” or other comparable terminology. Forward-looking statements in this document include, but are not limited to, statements about our future financial performance, our business plan, our market opportunities and beliefs and objectives for future operations. These statements involve risks, uncertainties, assumptions and other factors that may cause actual results or performance to be materially different. More information on the factors, risks and uncertainties that could cause or contribute to such differences is included in our filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion & Analysis” sections of such filings. We cannot assure you that the forward-looking statements will prove to be accurate. These forward-looking statements speak only as of the date hereof. We disclaim any obligation to update these forward-looking statements.

Questions? Need more assistance? Send us an email at support@FEX.com. We promise quick human help!