While units representing percentages of revenue-sharing securities are not a new concept, in connection with Channel Drops done through GigaStar Market, the term “Revenue Sharing Unit” (“RSU”) was determined to be used because it is an accurate representation of the economic value attributable to the security being purchased by investors, i.e., a percentage of the Channel’s future Net YouTube Revenue (NYR).
To GigaStar’s knowledge, no other securities offerings of percentages of YouTube revenue have ever been completed, and thus the RSUs for the Channel Drop are “new”. The Form C filed for each offering on GigaStar Market provides a full description of the terms of the RSUs (as do the Revenue Sharing Agreement under which they are issued).
Investors should remember that all securities offerings are subject to risk. Investment offerings under Regulation CF are speculative, illiquid, and involve a high degree of risk, including the risk of loss of your entire investment.