Rule 504 provides an exemption for the offer and sale of up to $1,000,000 of securities in a 12-month period. Your company may use this exemption so long as it has a specified business objective. The good news is that Rule 504 does not require issuers to give disclosure documents to investors, you can sell securities to an unlimited number of persons, you can use general solicitation or advertising to market the securities, and purchasers receive securities that are not "restricted." This means that they may sell their securities in the open market without registration or other sales limits imposed on privately placed securities.
There is also a Rule 505 offering possible for sales of securities totaling up to $5 million in any 12-month period to an unlimited number of "accredited investors" and up to 35 other persons (who do not need to satisfy the sophistication or wealth standards associated with other exemptions). However, the use of a securities attorney is almost essential in any offering of securities if you value your company, you assets or your freedom.
State Law Center
|
Legal Resource Directory
|
Legal Articles
|
Insurance Advice and Quotes
|
FreeAdvice Answers
|
Community Forums
