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 music assets from rights holders and then offer those Royalty Shares that correspond to these music assets on the JKBX platform.
First, an issuer works with rights holders to identify assets (including some of the most popular songs and recordings in the world) and secure percentages of the associated royalties for purchase. Next, an offering circular describing the Royalty Shares and the 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.
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.
The Reservation Process
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.
Yes. A reservation is a non-binding indication of interest — you can cancel a reservation at any time and failure to cancel a reservation does not result in any obligation to purchase.
First, log in and navigate to your Reservations page. Find the specific reservation you want to cancel, then click the ‘X’ on the right hand side.