Compliance & structure
One corporation, one class of stock, one register. Here is the legal structure, the controls, and the tests we watch every month.
Structure
Fifth Meridian Energy, Inc. is a Delaware C-corporation. One company, one class of common stock, sold continuously at NAV per share. The acquisition engine that finds and prices the interests it buys is AIsopach (aisopach.com), licensed by the company's manager.
The company owns its oil and gas interests directly. There is no fund, no general partner, no manager entity, no blocker. It sells one class of common stock continuously at NAV per share and pays distributions out of the cash the wells produce.
A company whose business is owning and operating oil and gas interests is not an investment company. We rely on the Investment Company Act §3(c)(9) posture — substantially all of the business is owning or holding oil, gas or other mineral royalties or leases, or fractional interests in them — and, independently, the §3(a)(1)(C) 40% test: investment securities must stay below 40% of total assets excluding cash and government securities. The only investment security the company holds is the ADHI block, which is why it is disclosed, marked monthly and monitored against a 30% warning line.
Live balance sheet unavailable.
Controls
Document and liveness verification, PEP and adverse-media checks for every shareholder, with periodic re-screening. Entities provide beneficial-ownership information.
U.S. accredited investors are verified by a third-party service (income, net worth or professional licence) before any subscription is accepted. Verification letters expire and are renewed.
Every shareholder is screened against OFAC and international sanctions lists. Every payout wallet is verified as the shareholder's own and screened with blockchain analytics before its first payment, and continuously thereafter.
Non-accredited individuals under Regulation A are limited to 10% of the greater of annual income or net worth per 12 months; the portal enforces the limit at subscription.
The definitive shareholder register is maintained by an SEC-registered transfer agent. The on-chain ledger mirrors the register and can only move shares between verified holders; in any conflict the register controls.
NAV is prepared by management from the reserve report, production data and the strip, reviewed by a valuation committee that includes independent directors, and published with its inputs. Marks on the ADHI block are approved by independent directors.
Stablecoin balances — subscriptions awaiting conversion and distribution funding — are held with Coinbase Prime under a qualified custody arrangement with segregated accounts and multi-party approval for withdrawals. Dollar balances are held at an FDIC-insured bank. The company never holds shareholders' private keys and never lends or earns yield on customer stablecoin.