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 Investor FAQs

Anyone can invest as long as they complete the KYC (Know Your Customer) requirements. Both unaccredited and accredited investors are both free to apply, use, and enjoy the platform. 

Currently, the platform accepts US Dollars (fiat currency) via debit, credit, ACH, or bank transfer. Wire transfers and PayPal payments will be added soon. In the future, as regulation permits, we may also add non-traditional payment forms, including cryptocurrency and stablecoins.

At this time, you can ONLY use your digital wallet to hold any issuer distributed tokens representing equity in any invested project campaign. These tokens are distributed at the discretion of the campaign issuer.

In the future, these tokens may also allow you to utilize other cool features like voting, receiving payouts, and more. Your digital wallet is solely owned and controlled by you, the user, and managed through your third-party digital wallet service provider. Take the necessary steps to familiarize yourself with the technology before connecting your wallet. You are responsible for safeguarding and securing your digital assets. 

USDC is a stablecoin managed by Circle that is pegged to the US dollar. Unlike other more volatile forms of crypto, USDC always $1 dollar, and so it is always redeemable 1:1 for U.S. dollars. USDC reserves are held in the management and custody of leading U.S. financial institutions, including BlackRock and BNY Mellon. We do not currently offer a USDC payment option, but it may be available in the future as custody and regulatory options open up.

CineMint is a asset tokenizer application. Upon a successful raise, the filmmaker, creator, or issuer can generate tokens to distribute to their investors’ digital wallets. Those tokens can represent the investor’s equity stake.

The blockchain provides a virtually immutable digital ledger to track the project’s investments, transactions, reporting, interactions, and payments, so you can monitor the digital financial history of the project.

Yes. Only invest what you can afford to completely lose and maintain your lifestyle. Read each pitch along with the subsequent investment documents carefully and/or consult with your financial and/or legal advisors before investing. 

“Hollywood is risky business.” – Anonymous

CineBlock Films™ also offers the ability to invest in other entertainment media related properties including gaming, live events, and more.

Consult with your tax advisor or CPA for any local or state benefits for investing in films. 

Yes. Each campaign must file the appropriate forms with the SEC. Find out more on the SEC and FINRA websites. 

  1. Read the platform guide, terms of use, disclosures, FAQs, and privacy policy.

  2. Complete investor onboarding, KYC, and any other required pre-registration forms.

  3. Connect your wallet or add your payment gateway.

  4. Explore our catalog of movie campaigns.

  5. Select a film campaign to review.

  6. Review the film’s campaign profile, pitch, investment terms & documents

  7. If satisfied with the offering, click ‘bankroll’ project to begin the investor payment process.

  8. Complete transaction.

Currently, we ONLY accept fiat payments.

In the future, we would like to add the use of a dollar-pegged stablecoin called USDC (and other crypto). This crypto coin is uniquely tied to the US dollar and federally regulated. Even though you can use a stablecoin for payments, please note that cryptocurrencies can be unpredictable, and even stablecoins can lose value in the event of extremely unfavorable market conditions.

Always exercise caution when dealing and trading in stablecoins, or whenever you are storing or transferring cryptocurrency or digital tokens.

If the value of the stablecoin fluctuates post-raise or investment, it should have no effect on your equity holdings, unless otherwise noted in the campaign offering’s investor agreement.

1. SAFE AGREEMENT (SIMPLE AGREEMENT FOR FUTURE EQUITY)

A SAFE is an agreement between you, the investor, and the company in which the company generally promises to give you a future equity stake in the company if certain trigger events occur. Not all SAFEs are the same and the very important terms governing when you may get the future equity may vary across the SAFEs being offered in different crowdfunding offerings.

However:

  1. The most important thing to realize about SAFEs is that you are not getting an equity stake in return. SAFEs are not common stock.
  2. SAFEs may only convert to equity if certain triggering events occur.
  3. Depending on its terms, a SAFE may not be triggered.
  4. Keep in mind other possible provisions of the SAFE.
    1. Conversion terms.
    2. Repurchase rights.
    3. Dissolution rights
    4. Voting rights.
  5. SAFEs were designed for a specific type of startup.
  6. There is nothing standard or simple about a SAFE. Various terms from the triggering events to the conversion price are subject to different treatment by different companies offering SAFEs.

Despite its name, a SAFE may not be “simple” or “safe.”

SAFE holders may lose their entire investment.

2. SAFE + REVENUE SHARE (SAFE + REVENUE PARTICIPATION RIGHTS)

A SAFE+REV SHARE is an agreement between you, the investor, and the company in which the company generally promises to give you a future equity stake in the company if certain trigger events occur. AND that offers investors a percentage of the business’s future gross revenues capped at a certain multiple return. 

However, both sets of risks associated with Revenue Participation (from above) and Simple Agreement for Future Equity (from above) do apply.

3. CONVERTIBLE NOTE

A convertible note is an unsecured loan that converts to stock in the future. Similar to a SAFE, this type of offering delays the task of determining the value of a company and converts the share at a future qualified financing round. Also, like a SAFE the conversion is intended to be discounted based on a valuation cap, a discount rate, and also accounts for an interest rate (unlike a SAFE) for taking the risk of investing earlier.

4. CORPORATE BOND

A corporate bond is an interest-bearing debt instrument containing a corporation’s promise to pay a fixed sum of money (yield) at some future time. Holders of corporate bonds generally have priority of payment over any other instrument of ownership or debt in the corporation.

However, there is no assurance that the Issuer will have any assets to pay bond holders in the event of a liquidation and in that event, the bond holders can lose their entire investment. Interest payments are not guaranteed.


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INVESTOR RISK STATEMENT

CineBlock Films, LLC, a Maryland limited liability company (“CineBlock Films”), is a funding portal registered with the United States Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA).
CineBlock Films is neither a broker-dealer nor investment advisor, and is not responsible for the activities of users of this website, software or mobile app (the “Platform”).
CineBlock Films does not provide investment advice of any kind to investors and no communication through this Platform should be construed as an investment advice for any security offered on this Platform.
All securities listed on this Platform are offered by, and all information included on this Platform is the responsibility of the issuer of such securities. CineBlock Films has not taken any steps to verify adequacy, accuracy or completeness of any information.
Neither CineBlock Films nor any of its officers, directors, agents and employees make any warranty, express or implied, of any kind whatsoever related to the adequacy or completeness of any information on this Platform or the use of information on this Platform.
CineBlock Films conducts all funding portal activities of this online intermediary platform, where crowdfunded securities are offered for sale by issuers in accordance with the rules governing the offer and sale of securities under Section 4(a)(6) of the Securities Act of 1933.
CineBlock Films permits prospective investors to independently search and invest in digital securities offerings on the Platform.
The securities offered on the Platform are only suitable for prospective investors who are familiar with and willing to accept the high risks associated with private investments, including the risk of complete loss of their investment. Securities sold through CineBlock Films are highly speculative and illiquid. Securities will be subject to restrictions on resale or transfer including holding period requirement of one year. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. Investors are advised to consult with their tax, legal and financial advisors prior to making an investment.
The securities offered on this Platform are not offered in jurisdictions where public solicitation for offerings is not permitted. Investors are responsible for complying with the laws and regulations of their country of residence.
This Platform is owned and maintained by CineBlock Holdings, Inc., a Delaware corporation (“Holdings”). Holdings, a provider of technology services, is an affiliate of CineBlock Films, LLC. Holdings is neither a funding portal, broker-dealer, nor investment advisor.
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Risk of digital securities

CineBlock Films issues investment commitment tokens in digital wallets of investors through the Ethereum blockchain. At the end of a successful offering, the issuer replaces or converts investment commitment tokens into digital securities.

Investors are responsible for maintaining security and confidentiality of their digital wallet password, secret phrase and private key (“Credentials”). Investors must protect their Credentials from cybertheft. Investors must not share their Credentials with any other person. Neither CineBlock Films nor any other party has access to an investor’s Credentials. In the event of loss of Credentials, the investor will lose all assets in their digital wallet. Excluding the replacement of investment commitment tokens during the subscription period upon payment of a replacement fee of $50 , CineBlock Films will not be liable for any loss, damage or injury or for any direct, indirect, special, incidental, exemplary, or consequential damages arising from or related to the loss of an investor’s Credentials or errors in the use of their digital wallet. Post-subscription, investors must contact the issuer or issuer’s transfer agent for replacement of lost digital securities. Issuer or their transfer agent may charge a fee for replacement of digital securities.

The Ethereum blockchain keeps all transaction history public using the public key of digital wallets. Investors may want to control access to the public key of their digital wallet except when they have to share the public key with a counterparty to execute a transaction. We advise investors to review Managing Privacy and Security on Public Blockchains before making an investment.

If the Ethereum blockchain is split or forked into two or more branches, CineBlock Films will, in its sole discretion, decide which branch of Ethereum it will use. Any investment commitment tokens issued by CineBlock Films will be valid only on the branch of Ethereum which CineBlock Films decides to use. Excluding the replacement of investment commitment tokens, CineBlock Films will not be liable for any loss, damage or injury or for any direct, indirect, special, incidental, exemplary, or consequential damages arising from or related to a split of the Ethereum blockchain. Post-subscription, investors must contact the issuer or issuer’s transfer agent to find out the branch of Ethereum which will be valid for the digital securities in the event of a split of the Ethereum blockchain.