Issuing new shares

What it does

A share issuance is when the company creates and allocates new shares to a shareholder. The number of issued shares grows, the cap table grows, and the shareholder's holding grows.

Common occasions:

• Incorporation — the founders get their initial shares
• Funding round — investors get shares in exchange for cash
• EMI grant exercise — an employee exercises their options (the underlying shares are issued at that point)
• Bonus issue — existing shareholders get pro-rata new shares free of charge

Before you start

Issuance always goes to an existing shareholder in Blankitt. If the recipient isn't already on the s113 register, admit them first via Company → Shareholders → Admit shareholder.

The share class must also already exist. See Setting up share classes if not.

How to record an issuance

1. Go to Company → Share Transactions
2. Click Issue shares
3. Pick the recipient from the shareholder dropdown
4. Pick the share class
5. Enter the number of shares to issue
6. Set the transaction date (the effective date — for round closes, use the closing date)
7. Optionally enter:
   • Price per share — what the shareholder is paying (e.g. £2.50 for a Series A round)
   • Total consideration — the cash actually changing hands (if you set price per share and shares, this fills in automatically)
   • Currency — defaults to GBP; if the round is denominated in another currency, set the currency and the FX-derived GBP figure is stored alongside
   • Notes — anything you'd like to remember about the issuance (e.g. "Founder issuance at incorporation")
8. Click Issue

Blankitt records the issuance in the append-only Share Transactions log, updates the holder's row on the Cap Table, and bumps the class's issued-share count — all atomically. If anything fails, none of it is persisted.

Tips

• The nominal value of the class is what gets booked to share capital on the balance sheet (auto-journal posting lands in a later release — for now the issuance is recorded as an event, not yet a bookkeeping journal).
• The share-premium component (price minus nominal) flows into share premium reserves at the same time.
• For very common founder issuances at incorporation, use the class's nominal value as the price per share — typically £0.01.
• For EMI / option pool issuances, see the dedicated Options module when it lands in Month 3.