FAQ
How JKBX Works
JKBX (pronounced "Jukebox") unlocks shared value from things people love by offering consumers access to royalties as an asset class.
The short: JKBX is a platform where you can invest in Royalty Shares of hit songs.
The long: JKBX is a platform for investing in shares of the income generated from music royalties by purchasing Royalty Shares. If you’re a music superfan looking for a deeper connection with the music you love, now you can turn your playlist into a passive income stream.
The JKBX platform doesn't buy or sell securities. Issuers buy royalty rights from rights holders and then offer those Royalty Shares that correspond to these royalty rights on the JKBX platform.
First, an issuer works with rights holders to identify music assets (including some of the most popular songs and recordings in the world) and secure percentages of the associated royalty rights for purchase. Next, an offering circular describing the Royalty Shares and the underlying music assets is submitted to the SEC for review and qualification. Once the offering circular is qualified by the SEC, the issuer offers the Royalty Shares for sale on the JKBX platform.
- If you are an Artist or Songwriter, please send an email to [email protected].
- If you are a Rights Holder, please send an email to [email protected].
- For all other music-related questions and inquiries, please send an email to [email protected].
Regulatory Compliance
Issuers will offer and sell the Royalty Shares pursuant to Regulation A under the Securities Act of 1933. Regulation A allows private companies to raise capital from the general public in the United States and not just from accredited investors. It is a provision under the Securities Act of 1933 Regulation A, which was expanded and enhanced by the JOBS Act in 2015. In some ways, it is like an initial public offering (IPO) — Regulation A allows companies to offer shares to the general public and not just accredited investors.
A Regulation A offering is sometimes called a "mini-IPO" because they resemble the process of an IPO, but with some differences. There are many financial, legal and regulatory compliance and disclosure requirements, all of which must be qualified by the SEC before any Royalty Shares can be issued.
For more information on Regulation A, please see https://www.sec.gov/education/smallbusiness/exemptofferings/rega.
An IPO, or Initial Public Offering, is a process through which a private company offers shares of its stock to the public for the first time. It’s a way for a company to raise capital and become publicly traded on a stock exchange. During an IPO, the company sells a portion of its ownership to investors in the form of shares, and these shares are then traded on the open market. This allows individuals and institutional investors to buy and sell shares of the company, providing the company with additional funds for growth and expansion.
For more information on an IPO please see https://www.sec.gov/education/capitalraising/goingpublic.
Although an IPO is the commonly used term for selling shares of stock to the public, the Royalty Shares offered on the JKBX platform are not the same as shares of public company stock. Issuers on the JKBX platform sell shares pursuant to an offering circular, which describe Royalty Shares in detail. Always refer to the offering circular for questions relating to specific Royalty Shares. The offering circular refers to the sale of Royalty Shares as an 'Initial Royalty Share Offering,' or IRSO, whenever an issuer offers Royalty Shares for the first time.
Know Before Investing
We are open to international investors that meet their applicable securities regulations, however JKBX is currently optimized for US-based individuals. At this time we only offer English-language customer support in US time zones, and not all product functionality may be available internationally.
Additionally, it's important to note that regulatory and legal requirements may differ between countries, so international investors should ensure compliance with the applicable laws and regulations in their respective jurisdictions.
Music insiders should not be buying any securities that they have material non-public information on or use this information for theirs or others personal gain. We recommend that you speak to your legal counsel if you have concerns about whether information you possess is considered to be material non-public information prior to purchasing any securities on the JKBX platform.
The JKBX platform will enable people the opportunity to invest in music assets. Investing is an industry that is highly regulated. On the real, what that means is, there are rules we have to play by, and rules we think you should know about. That’s why it’s so important we talk about insider trading and how this can apply to you - whether you identify as an Artist, a Creator, a Manager, or somewhere in between. The purpose of insider trading rules is to prevent insider trading, tipping, or any other misuse of material non-public Information. To be more specific, this is defined as Information that has not been disclosed to the public and would likely be considered important by a reasonable investor in making investment decisions. In other words, if you have information that no one else has, and if you make an investment decision based on that inside information, that means you could have an unfair advantage to make a profit.
Material non-public Information may include, but is not limited to, financial results, changes in expected royalty calculations or expectations, mergers and acquisitions, management or creator changes, regulatory decisions, proprietary company or industry information.
The Reservation Process
Now that Royalty Shares are available, you will need to place a buy order if you want to add the Royalty Shares to your account.
You can submit a buy order using the steps below.
After you login to your account, use the menu bar to click on the Browse tab.
Navigate to the asset you wish to purchase and click on it, this will take you to the asset’s Details page.
From there, you would use the order ticket to review the price of the asset and select the quantity of Royalty Shares you wish to purchase before clicking the Review Buy Order button.
You will be provided with a confirmation window asking you to review and confirm the information on your purchase. If everything looks correct, you can click on the Confirm Order button.
Congratulations! You just purchased a Royalty Share(s) on JKBX!
If you would like to see the status of your order, or view any other orders you have made, you can click on the Transactions tab from the menu bar.
Reserving Royalty Shares is a non-binding indication of interest to purchase the amount of Royalty Shares you select at the price you indicate. You may not receive the full allocation of shares you reserved, as those shares may become oversubscribed or may not be offered at all.
In general, there are no limits to the amount of reservations you can make. Regulation A, however, limits the amount of Royalty Shares that an investor (who is not an “accredited investor”) can purchase to no more than 10% of the greater of annual income or net worth (for natural persons), or 10% of the greater of annual revenue or net assets at fiscal year-end (for non-natural persons). As such, you should not reserve (or indicate interest) in amounts greater than the Regulation A purchase limitations. Importantly, note that any “reservation” made is primarily used by the issuer to assess interest in the contemplated offering of Royalty Shares and does not require you to buy, or require us to sell to you, any specific amount of Royalty Shares.