ENERGY SHARES, LLC CUSTOMER RELATIONSHIP SUMMARY (November 8, 2022)
Item 1. Introduction
Energy Shares, LLC (“Energy Shares”, “Firm”, “us”, or “we”) is registered with the Securities and Exchange Commission (“SEC”) as a broker-dealer and is a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”). SEC regulations require that broker-dealers like us provide you with a Relationship Summary that describes our services, fees, conflicts of interest, disciplinary history, and other important information. Brokerage and investment advisory services and fees differ, and it is important for investors to understand the differences. Free and simple tools are available to research firms and financial professionals at https://www.investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
Item 2. Relationship and Services
What Investment Services and Advice Can You Provide Me?
We offer brokerage services to “retail investors” as defined under Regulation Best Interest.
We only offer and sell private placement offerings to retail investors under Regulation CF, Regulation D, and Regulation A. in the renewable energy sector.
These offerings are speculative, high risk and illiquid investments where an investor may lose their entire investment. We do not make any recommendations and do not provide any ongoing monitoring of your accounts. When making an investment decision, investors must make their own determination and rely on their due diligence and examination of the issuer, the investment offering documents, and the terms of the offering.
These private securities are not suitable for all investors and there is no guarantee an investment will be profitable or that there will ever be an exit strategy or an opportunity to liquidate the investment.
We act as a placement agent in connection with these offerings which are unregistered capital stock of private companies. We only offer private placement securities. Other firms offer a wider range of products and services.
In addition, securities you own or may wish to purchase may not be available for secondary trading nor is there a guarantee of liquidity.Ask your Financial Professional:
- Given my financial situation, should I choose a brokerage service? Why or why not?
- How will you choose investments to recommend to me?
- What is your relevant experience, including your licenses, education, and other qualifications? What do these qualifications mean?
Item 3. Fees, Costs, Conflicts of Interest and Standard of Conduct
What Fees Will I Pay?
If you open a brokerage account, the Firm will not charge you a fee to buy or sell securities; however, as noted above, there is no guarantee of liquidity. Additionally, there are no account maintenance, closure, or statement fees; however, there may be fees to wire funds or insufficient funds fee. Energy Shares reserves the right to amend or change our fee structure. If there are fees and costs assessed, please note that will reduce any amount of money you may make on your investment over time. When you invest, the issuer bears the fees that are typically assessed associated with these offerings.Ask your Financial Professional:
- Help me understand how these fees and costs might affect my investments.
- If I give you $10,000 to invest, how much will go to fees and costs and how much will be invested for me?
To learn more concerning our cost structure, please ask us or see our website at https://energysharesus.com.
What Are Your Legal Obligations To Me When Providing Recommendations? How Else Does Your Firm Make Money and What Conflicts of Interests Do You Have?
We must abide by certain laws and regulations in our interactions with you. We do not provide recommendations. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the services, we provide you. Here are some examples to help you understand what this means:
We act as a placement agent for issuers in direct private company securities offerings to investors. For these situations, we are paid a cash fee by the issuer, typically based on successfully placing a certain amount of securities, which incentivizes us to offer these securities. We receive payments from the issuer (the company selling you its securities).
At times, our affiliated entities may be providing services to an issuer for which the affiliate is paid directly. Energy Shares is a wholly owned subsidiary of Solariant Holdings, LLC, which is directly owned by Solariant Capital, LLC (“Solariant”). Through a Project Management Agreement, Solariant will have proxy and Power of Attorney for investor interest. Solariant may also provide the issuers with due diligence services for private placements. As all of these entities are under common ownership and control, we do have an incentive to have the issuers use our services which are being paid. Affiliate involvement will be disclosed on a deal-by-deal basis.
If there are conflicts of interests, we must eliminate these conflicts or tell you about them and in some cases reduce them.
How Do Your Financial Professionals Make Money?
Our financial professionals and staff are paid a fixed salary and do not receive any transaction-based compensation. They may receive a discretionary bonus based on their overall performance, which is not tied to any specific offering.
Item 4. Disciplinary History
Do Your Financial Professionals Have Any Legal or Disciplinary History?
No, neither the Firm nor any of its financial professionals have any disciplinary history. You can find more information about us at https://www.investor.gov/CRS.Ask your Financial Professional:
- As a financial professional, do you have disciplinary history? If so, for what type of conduct?
Item 5. Additional Information
If you have questions, wish to learn additional information about our brokerage services or would like to request a copy of this Customer Relationship Summary, please contact us at: 626-544-0279, email us at: firstname.lastname@example.org or visit our website at: https://energysharesus.com.Ask your Financial Professional:
- Who is my primary contact person?
- Is he or she a representative of an investment adviser or a broker- dealer?
- Who can I talk to if I have concerns about how this person is treating me?