Another question I have received when speaking to interested investors is: what is the difference between a Class C share and the other shares - Class A and Class B? Great question as StartEngine doesn't do a good job of explaining this.
The answer is that Class A, B and C are exactly the same in terms of economics but different in voting rights. What I mean by "same in terms of economics" is the following. When you purchase 250 Class C shares of Contenders for $1/share (our minimum investment is $250), you get the same rights as the Class A and B when it comes to distributions upon sale and/or dividends. Your percentage ownership is the number of shares you purchase divided by the total shares outstanding. For example, if you were to purchase all shares in this offering you would own 1,000,000 shares out of a total of 7,000,000 (6,000,000 shares outstanding before the offering and 7,000,000 after 1,000,000 shares are issued) or 14.2% of the company. If we were sold for $35,000,000, the Class C shareholder would receive ~$5,000,000 or 5x return on his/her money.
The only difference is in voting. The Class A shares have 1 vote for every Class A share owned. These are the Company's early seed investors (my close friends and family). I own Class B shares which have a 10 votes for every Class B share owned. And the Class C shares are non-voting. We structured it this way because we simply did not know who would be investing this offering and their intentions. Our current shareholder base is small and is comprised of my good friends and family and our operating team (our awesome designers John & Mike Anderson, our brilliant Creative Director Sean, my long-time business partner and VP of Ops, Jim Bunte etc)