Professional Documents
Culture Documents
SummaryofPROPOSEDIntrastateCrowdfundingExemptions(asofAugust2014)
Anyofferorsaleofsecuritiesthatusesthejurisdictionalmeans(themails,phones,internet)mustberegisteredunderthefederalSecuritiesActof1933(theSecuritiesAct)orbemadeinaccordancewithanexemptionfromthatregistration.Such
exemptionsapplyONLYtoregistrationoftheoffering;issuersarestillsubjecttoliabilityunderthefederalantifraudlaws.Similarly,ifissuersacquireaspecifiednumberofequityholders,theywillberequiredtoregisterunderthefederalSecurities
ExchangeActof1934.Further,anyintermediaryusedinconnectionwithasecuritiesofferingMAYbesubjecttoapplicablefederalandstatebrokerdealerand/orotherregistrationrequirements.
ThefederalexemptionmostfrequentlyreliedonforintrastateofferingsisSection3(a)(11)oftheSecuritiesAct,butRule504oftheoftheSecuritiesActisalsoused.Resale/transferofsecuritiessoldthroughintrastateofferingswillberestrictedbased
on the underlying federal exemption. If the intrastate offering relies on Section 3(a)(11), the securities will have to come to rest (9 month requirement under SEC Rule 147) in the respective state before they can be transferred. If the intrastate
offeringreliesonRule504,thesecuritieswillberestrictedsecuritiesandsubjecttotherestrictionsontransferprovideintheSecuritiesAct.
Potentialliabilitiesforissuersandintermediariesinconnectionwithintrastateofferingsinclude,amongothers,antifraudliabilityunder12(a)(2)oftheSecuritiesActandRule10b5undertheExchangeAct,aswellastherespectiveapplicablestate
securitiesantifraudliabilitystatutes(someofwhichareidentifiedbelow).
DISCLAIMER: Nothing in this chart is, or is intended to be, legal advice. The information herein is provided for informational purposes ONLY and YOU SHOULD CONSULT WITH YOUR ATTORNEY before using any of this
information.Further,NOREPRESENTATIONORWARRANTYismadeastotheaccuracyoruseofanyofinformationcontainedinthischartandthereshallbeNODUTY,expressorimplied,ontheauthorsoranyotherperson
toupdateanyoftheinformationherein.
HB5577 Proposed
rules(26
DCMR250)
HB1299
(currently
dead);andSB
1596
(currently
dead)
Currently
Unsponsored
(www.illinoiscrow
dfundingnow.com)
HB1736 HB680
(InvestNC
Exemption)
SB712 H.4799 Proposed
Rules(39
TexReg3652)
HB142 SB351;HB
880
Statute
citation
AlaskaStat.
45.55.900(b);
45.55.175
California
Corp.Code.
25112,et
seq.,as
amendedby
AssemblyBill
2096
(seeNote4
below)
Proposed
newsection
Title26,
SubtitleB,
Chapter2,
Section250
Fla.Stat.
517.011et
seq.,etseq.,
asamended
byHB
1299/SB1596
815ILCS
5/1,etseq.,
asamended
byproposed
bill
RSMo
409.315
Proposed
newsection
N.C.Gen.
Stat.78A19
Newact
supplement
ingP.L.1967,
c.93(C.49:3
47etseq.)
Proposed
newsection
S.C.Code
Ann.351
205
Title7,Part7,
asamended
byproposed
rules
UtahCode
61114,as
amendedby
HB142
VACode
13.1514,as
amendedby
SB351;HB
142
Exemption
fromfederal
registration
reliedupon
(seeNote1
below)
Section
3(a)(11)of
theSecurities
Act
Rule504of
RegulationD
(seeNote4
below)
Section
3(a)(11)of
theSecurities
ActandRule
147
Section
3(a)(11)of
theSecurities
Act
Section
3(a)(11)of
theSecurities
Act
Section
3(a)(11)of
theSecurities
Act
Section
3(a)(11)of
theSecurities
Act
Section
3(a)(11)of
theSecurities
Act
Section
3(a)(11)of
theSecurities
Act
Section
3(a)(11)of
theSecurities
Act
Section
3(a)(11)of
theSecurities
Act
Section
3(a)(11)of
theSecurities
Act
Companies
permittedto
usethe
exemption
Onlyavailable
tocompanies
organizedand
doing
businessin
thestate
Silentasto
whether
issuing
company
needstobe
organizedin
thestate;
excludes
(seeNote4
below)
Only
available:to
companies:
organized
anddoing
businessin
thedistrict;
and
Onlyavailable
tocompanies
organizedand
doing
businessin
thestate;
excludes
investment
Onlyavailable
tocompanies
organizedand
doing
businessin
thestate;
excludes
investment
Onlyavailable
tocompanies
organizedand
doing
businessin
thestate;
excludes
investment
Onlyavailable
tocompanies
organizedand
doing
businessin
thestate;
excludes
investment
Onlyavailable
tocompanies
organizedand
doing
businessin
thestate
Onlyavailable
tocompanies
organizedand
doing
businessin
thestate;
excludes
investment
Only
available:to
companies:
organized
anddoing
businessin
thestate;
whoderived
Onlyavailable
tocompanies
organizedand
doing
businessin
thestateand
whohaveat
least80%of
Onlyavailable
tocompanies
organizedand
doing
businessin
thestate;
excludes
investment
PreparedasacollaborationbyCrowdcheck(www.crowdcheck.com),AnthonyJ.Zeoli,Esq.(azeoli@ginsbergjacobs.com)ofGinsbergJacobsLLC,andGeorgiaP.Quinn,Esq.(gquinn@seyfarth.com)ofSeyfarthShawLLP.
STATE ALASKA CALIFORNIA CONNECT
ICUT
DISTRICTOF
COLUMBIA
FLORIDA ILLINOIS MISSOURI NORTH
CAROLINA
NEWJERSEY SOUTH
CAROLINA
TEXAS UTAH VIRGINA
investment
companies,
SECreporting
companies,or
blankcheck
companies
whose
principal
officeisin
thedistrict;
excludes
investment
companies,
SECreporting
companies,or
blankcheck
companies
companies,
SECreporting
companies,or
blankcheck
companies
companies,
SECreporting
companies,or
blankcheck
companies
companies,
SECreporting
companies,or
blankcheck
companies
companies,
SECreporting
companies,or
blankcheck
companies
companies,
SECreporting
companies,or
blankcheck
companies
atleast80%
oftheir
gross
revenues
from
operations
inthestate
forthemost
recentfiscal
yr.priorto
theoffering;
whohaveat
least80%of
theirassets
inthestate
asofthe
mostrecent
semiannual
periodprior
tothe
offering;and
whowilluse
atleast80%
ofthe
offering
proceedsin
thestate;
and
whose
principal
officeisin
thestate;
excludes
investment
companies,
SECreporting
companies,or
blankcheck
companies
theirassetsin
thestate
companies,
SECreporting
companies,or
blankcheck
companies
Aggregate
annualsales
limit
$1,000,000 $1,000,000 (seeNote4
below)
Limitedto:
$2,000,000
ifissuerpro
videsinde
pendently
auditedGAAP
fin.state
$1,000,000 Limitedto:
$5,000,000
ifissuerpro
videsinde
pendently
auditedfin.
statements;
$1,000,000 Limitedto:
$2,000,000
ifissuerpro
videsinde
pendently
auditedfin.
statements;
$1,000,000
NOTE
Amounts
receivedby
Accredited
Investorswill
Unlimited $1,000,000 $1,000,000 $2,000,000
(subjectto
peroffering
limits)
PreparedasacollaborationbyCrowdcheck(www.crowdcheck.com),AnthonyJ.Zeoli,Esq.(azeoli@ginsbergjacobs.com)ofGinsbergJacobsLLC,andGeorgiaP.Quinn,Esq.(gquinn@seyfarth.com)ofSeyfarthShawLLP.
STATE ALASKA CALIFORNIA CONNECT
ICUT
DISTRICTOF
COLUMBIA
FLORIDA ILLINOIS MISSOURI NORTH
CAROLINA
NEWJERSEY SOUTH
CAROLINA
TEXAS UTAH VIRGINA
ments;
OR
$1,000,000
ifissuerpro
videsindepe
ndentlyrevi
ewedfin.
statements;
OTHERWISE
$500,000
OR
$3,000,000
ifissuerpro
videsindepe
ndentlyrevi
ewedfin.
statements;
OTHERWISE
$1,000,000
NOTE
Amountsre
ceivedby
Accredited
Investorsor
any
Experienced
Investorswill
notcountto
ward
calculationof
theoffering;
Offeringcap
amountswill
beincreased
every5years
forCPI
changes
OR
$1,000,000
NOTE
Offeringcap
amountswill
beincreased
every5years
forCPI
changes
notcount
toward
calculationof
theoffering
State
registration
requirements
Notice
requiredbut
rulesnot
finalized,
otherthan:
(a)inclusion
ofcopyof
Escrow
Agreement;
and(b)
if/whenusing
anInternet
Offering
Portal,notice
Commission
ermayby
rulerequire
theissuerto
filenotice.
NASAASCOR
disclosure
documenton
FormU7
(seeNote4
below)
Mustfilewith
commission
nolaterthan
20days
beforeany
offer:
Notification
ofintentto
relyon
exemption
Mustfilewith
commission
beforeearlier
offirstsaleof
anygeneral
solicitation:
Notification
ofintentto
relyon
exemption;
Issuer
Information
(including
documentati
Mustfilewith
commission
beforeearlier
offirstsaleor
anygeneral
solicitation
(otherthan
thepermitted
general
announce
ment):
Notification
ofintentto
relyon
Mustfilewith
commission
beforeany
general
solicitation:
Notification
ofintentto
relyon
exemption;
Issuer
Information;
and
Namesofall
persons
Mustfilewith
commission
beforeany
general
solicitation:
Notification
ofintentto
relyon
exemption;
Issuer
Information;
and
Namesofall
persons
Silent Mustfilewith
commission
beforeany
general
solicitation:
Notification
ofintentto
relyon
exemption;
Issuer
Information;
and
Namesofall
persons
Mustfilewith
commission
atleast21
daysbefore
anyoffering:
Form
133.17;
Copyof
disclosure
statement
deliveredto
investors;
Copyof
offering
Notice
requiredbut
rulesnot
finalized
Mustfilewith
commission
beforeany
general
solicitation:
Notification
ofintentto
relyon
exemption;
Issuer
Information
(including
documentati
on
PreparedasacollaborationbyCrowdcheck(www.crowdcheck.com),AnthonyJ.Zeoli,Esq.(azeoli@ginsbergjacobs.com)ofGinsbergJacobsLLC,andGeorgiaP.Quinn,Esq.(gquinn@seyfarth.com)ofSeyfarthShawLLP.
STATE ALASKA CALIFORNIA CONNECT
ICUT
DISTRICTOF
COLUMBIA
FLORIDA ILLINOIS MISSOURI NORTH
CAROLINA
NEWJERSEY SOUTH
CAROLINA
TEXAS UTAH VIRGINA
specifyinguse
ofsuch
Internet
Offering
Portalandthe
website
address
on
evidencing
issuers
formation
withinthe
State);and
Namesofall
persons
involved
withthe
offering;
Nameof
escrowee
institution
exemption;
Issuer
Information
(including
documentati
on
evidencing
issuers
formation
withinthe
State);and
Namesofall
persons
involved
withthe
offering;
Nameof
escrowee
institution
involved
withthe
offering;
Nameof
escrowee
institution
involved
withthe
offering
(including
anyInternet
Offering
Portal);
Nameof
escrowee
institution
involved
withthe
offering;
Nameof
escrowee
institution;
and
Copyof
termsheet
providedto
investor
summary
deliveredto
investors
evidencing
issuers
formation
withinthe
State);and
Namesofall
persons
involved
withthe
offering;
Namesofall
principal
owners;
Namesofall
managers
(andtheir
experience);
Identificatio
nofall
intermedi
aries(incl.all
Internet
Offering
Portals;
Termsof
offering
includingrisk
factors;
Current
litigationor
legal
proceedings
involving
companyor
management
Copyof
escrow
agreement
Internet
OfferingPortal
requirements
orrestrictions
(seeNote2
below)
Offeringmay
bemade
throughan
Internet
Offering
Portal
Silentasto
required
registrationof
Silent (seeNote4
below)
Offeringmay
bemade
throughan
Internet
Offering
Portal
Offering
Portalmust
Offeringmay
bemade
throughone
ormore
Internet
Offering
Portals
Offering
Portalnot
Offeringmay
bemade
throughone
ormore
Internet
Offering
Portals
Offering
Portalnot
Silent Offeringmay
bemade
throughan
Internet
Offering
Portal
Silentasto
required
registrationof
Offeringis
made
exclusively
throughone
ormore
Internet
Offering
Portals
Silentasto
Silent Offeringis
made
exclusively
throughone
ormore
Internet
Offering
Portals
Offering
Silent Offeringmay
bemade
throughone
ormore
Internet
Offering
Portals
organizedin
thestate
PreparedasacollaborationbyCrowdcheck(www.crowdcheck.com),AnthonyJ.Zeoli,Esq.(azeoli@ginsbergjacobs.com)ofGinsbergJacobsLLC,andGeorgiaP.Quinn,Esq.(gquinn@seyfarth.com)ofSeyfarthShawLLP.
STATE ALASKA CALIFORNIA CONNECT
ICUT
DISTRICTOF
COLUMBIA
FLORIDA ILLINOIS MISSOURI NORTH
CAROLINA
NEWJERSEY SOUTH
CAROLINA
TEXAS UTAH VIRGINA
Offering
Portalas
brokerdealer
beoperated
bytheissuer,
registered
broker
dealer,or
registered
Funding
Portal;
Offering
Portalandits
operators
mustbein
thatisin
compliance
withall
District,SEC
andFINRA
requirements
requiredto
registerasa
brokerdealer
ifall
applicable
conditions
met
requiredto
registerasa
brokerdealer
ifall
applicable
conditions
met
Offering
Portalas
brokerdealer
required
registrationof
Offering
Portalas
brokerdealer
Portalnot
requiredto
registerasa
brokerdealer
ifall
applicable
conditions
met
Offering
Portalnot
requiredto
registerasa
brokerdealer
ifall
applicable
conditions
met
Escrowee
requirements
orrestrictions
Fundsmust
bedeposited
with
escrowee
until
minimum
offering
amount
satisfied
(silentasto
qualifications
ofescrowee)
Fundsmust
bedeposited
with
escrowee
until
minimum
offering
amount
satisfied
(silentasto
qualifications
ofescrowee)
(seeNote4
below)
Fundsmust
bedeposited
with
escrowee
chartered
(and
authorizedto
dobusiness)
inthedistrict
oranagency
ofthefederal
government
until
minimum
offering
amount
satisfied
Fundsmust
bedeposited
with
escrowee
authorizedto
dobusinessin
thestateuntil
minimum
offering
amount
satisfied
Fundsmust
bedeposited
with
escrowee
qualifiedto
dobusinessin
thestateuntil
minimum
offering
amount
satisfied;
Escrowee
mustmeet
certain
licensingand
registration
requirements
Fundsmust
bedeposited
with
escrowee
authorizedto
dobusinessin
thestateuntil
minimum
offering
amount
satisfied
Fundsmust
bedeposited
with
escrowee
until
minimum
offering
amount
satisfied
(silentasto
qualifications
ofescrowee)
Fundsmust
bedeposited
with
escrowee
until
minimum
offering
amount
satisfied
(silentasto
qualifications
ofescrowee)
Fundsmust
bedeposited
with
escrowee
authorizedto
dobusinessin
thestateuntil
minimum
offering
amount
satisfied
Fundsmust
bedeposited
with
escrowee
authorizedto
dobusinessin
thestateuntil
minimum
offering
amount
satisfied
Silent Fundsmust
bedeposited
with
escrowee
locatedinthe
stateuntil
minimum
offering
amount
satisfied
Annual
Investment/Sa
leLimitations
(perIssuerto
anInvestor)
perissue
annual
investorlimits
Limitedto:
thegreater
of$2,000or
5%ofthe
investors
incomeornet
worth,IFthe
investors
incomeornet
worthisless
than
Limitedto:
$5,000per
investor,
unless
investor
qualifiesasan
Accredited
investor
underRule
501of
RegulationD
(seeNote4
below)
Limitedto:
$10,000if
theinvestor's
grossincome
islessthan
$100,000
OR
$25,000if
theinvestor's
Limitedto:
thegreater
of$2,000or
5%ofthe
investors
incomeornet
worth,IFthe
investors
incomeornet
worthisless
than
Limitedto:
$5,000IF
theinvestors
incomeornet
worthisless
than
$100,000;
OR
10%ofthe
Limitedto:
$1,000per
investor,
unless
investor
qualifiesasan
Accredited
investor
underRule
501of
RegulationD
Limitedto:
$2,000per
investor,
unless
investor
qualifiesasan
Accredited
investor
underRule
501of
RegulationD
Limitedto:
$5,000per
investor,
unless
investor
qualifiesasan
Accredited
investor
underRule
501of
RegulationD
Unlimited Limitedto:
$5,000per
investor,
unless
investor
qualifiesasan
Accredited
investor
underRule
501of
RegulationD
Silent Limitedto:
thegreater
of$2,000or
5%ofthe
investors
incomeornet
worth,IFthe
investors
incomeornet
worthisless
than
PreparedasacollaborationbyCrowdcheck(www.crowdcheck.com),AnthonyJ.Zeoli,Esq.(azeoli@ginsbergjacobs.com)ofGinsbergJacobsLLC,andGeorgiaP.Quinn,Esq.(gquinn@seyfarth.com)ofSeyfarthShawLLP.
STATE ALASKA CALIFORNIA CONNECT
ICUT
DISTRICTOF
COLUMBIA
FLORIDA ILLINOIS MISSOURI NORTH
CAROLINA
NEWJERSEY SOUTH
CAROLINA
TEXAS UTAH VIRGINA
$100,000;
OR
10%ofthe
investors
incomeornet
worthupto
$100,000,IF
theinvestors
incomeornet
worthis
greaterthan
$100,000
NOTE
Commissio
nergranted
authorityto
increasethe
individual
limit
grossincome
islessthan
$200,000
$100,000;
OR
10%ofthe
investors
incomeornet
worthupto
$100,000,IF
theinvestors
incomeornet
worthis
greaterthan
$100,000
investors
incomeornet
worthupto
$100,000,IF
theinvestors
incomeornet
worthis
greaterthan
$100,000;
unless
investor
qualifiesasan
Accredited
investor
underRule
501of
RegulationD
oran
Experienced
Investor
underIllinois
Compiled
Stat.815
ILCS5/2
NOTE
Investment
capamounts
willbe
increased
every5years
forCPI
changes
NOTE
Investment
capamounts
willbe
increased
every5years
forCPI
changes
$100,000;
OR
10%ofthe
investors
incomeornet
worthupto
$100,000,IF
theinvestors
incomeornet
worthis
greaterthan
$100,000;
unless
investor
qualifiesasan
Accredited
investor
underRule
501of
RegulationD
Required
disclosureto
investor
(seeNote3
below)
Identifying
information
about,and
description
of,theIssuer
Restriction
ontransfer
Intended
useof
proceeds
Risksto
purchasers
Termsof
Identifying
information
about,and
description
of,theIssuer
Restriction
ontransfer
Intended
useof
proceeds
Risksto
purchasers
Termsof
(seeNote4
below)
Identifying
information
about,and
description
of,theIssuer
Restriction
ontransfer
Intended
useof
proceeds
Risksto
purchasers
Termsof
Identifying
information
about,and
description
of,theIssuer
Restriction
ontransfer
Intended
useof
proceeds
Risksto
purchasers
Termsof
Identifying
information
about,and
description
of,theIssuer
Restriction
ontransfer
Intended
useof
proceeds
Risksto
purchasers
Termsof
Identifying
information
about,and
description
of,theIssuer
Restriction
ontransfer
Intended
useof
proceeds
Risksto
purchasers
Termsof
Identifying
information
about,and
description
of,theIssuer
Restriction
ontransfer
Intended
useof
proceeds
Risksto
purchasers
Termsof
Identifying
information
about,and
description
of,theIssuer
Restriction
ontransfer
Intended
useof
proceeds
Risksto
purchasers
Termsof
Identifying
information
about,and
description
of,theIssuer
Restriction
ontransfer
Intended
useof
proceeds
Risksto
purchasers
Termsof
Identifying
information
about,and
description
of,theIssuer
Restriction
ontransfer
Intended
useof
proceeds
Risksto
purchasers
Termsof
Identifying
information
about,and
description
of,theIssuer
Restriction
ontransfer
Intended
useof
proceeds
Risksto
purchasers
Termsof
Identifying
information
about,and
description
of,theIssuer
Restriction
ontransfer
Intended
useof
proceeds
Risksto
purchasers
Termsof
PreparedasacollaborationbyCrowdcheck(www.crowdcheck.com),AnthonyJ.Zeoli,Esq.(azeoli@ginsbergjacobs.com)ofGinsbergJacobsLLC,andGeorgiaP.Quinn,Esq.(gquinn@seyfarth.com)ofSeyfarthShawLLP.
STATE ALASKA CALIFORNIA CONNECT
ICUT
DISTRICTOF
COLUMBIA
FLORIDA ILLINOIS MISSOURI NORTH
CAROLINA
NEWJERSEY SOUTH
CAROLINA
TEXAS UTAH VIRGINA
Securities
AND
Anyother
information
materialto
theoffering
Securities
AND
NASAA
FormU7and
alldisclosure
requiredby
same,
including
audited(or
reviewed,if
certain
qualifications
aremet)
financial
statements
preparedin
accordance
withGAAP
Anyother
information
materialto
theoffering
NASAA
FormU7and
alldisclosure
requiredby
same
NOTE
NASAAForm
U7requires
audited
financial
statements
preparedin
accordance
withGAAP;
thelegislation
onlyrequires
audited
financial
statements
forofferings
between
$500,000and
Securities
AND
Required
disclosure
regarding
non
registrationof
securities;
Identityof
allpersons
owning>10%
ofanyclassof
securitiesof
Issuer;
Identityof
allofficers,
directors,etc.
ofIssuer;
Identificat
ionofthe
minimumand
maximum
amountof
securitiesto
besoldand
deadlinefor
closingof
offering;
Identificat
ionof
solicitorsand
intermediar
ies,along
with
compensation
Current
litigationor
legal
proceedings
Fiveyear
businessplan
Financial
statements
Anyother
information
materialto
theoffering
Securities
AND
Anyother
information
materialto
theoffering
Securities
AND
Identificat
ionofthe
minimumand
maximum
amountof
securitiesto
besoldand
deadlinefor
closingof
offering;
Rightof
cancelationif
minimum
offering
amountnot
metbefore
deadline
Anyother
information
materialto
theoffering
Securities
AND
Anyother
information
materialto
theoffering
Securities
AND
Anyother
information
materialto
theoffering
Securities
AND
Required
disclosure
regarding
non
registrationof
securities;
Identityof
allpersons
owning>10%
ofanyclassof
securitiesof
Issuer;
Identityof
allofficers,
directors,etc.
ofIssuer;
Identificat
ionofthe
minimumand
maximum
amountof
securitiesto
besoldand
deadlinefor
closingof
offering;
Identificat
ionof
solicitorsand
intermediar
ies,along
with
compensa
tion
Current
litigationor
legal
proceedings
Anyother
information
materialto
theoffering
Securities
AND
Copyof
TermSheet
andPrivate
Placement
Memo
Anyother
information
materialto
theoffering
Securities
AND
Financial
information
ofIssuer
Current
litigationor
legal
proceedings
Required
disclosure
statement
Anyother
information
materialto
theoffering
Securities
AND
Anyother
information
materialto
theoffering
Securities
AND
Anyother
information
materialto
theoffering
PreparedasacollaborationbyCrowdcheck(www.crowdcheck.com),AnthonyJ.Zeoli,Esq.(azeoli@ginsbergjacobs.com)ofGinsbergJacobsLLC,andGeorgiaP.Quinn,Esq.(gquinn@seyfarth.com)ofSeyfarthShawLLP.
STATE ALASKA CALIFORNIA CONNECT
ICUT
DISTRICTOF
COLUMBIA
FLORIDA ILLINOIS MISSOURI NORTH
CAROLINA
NEWJERSEY SOUTH
CAROLINA
TEXAS UTAH VIRGINA
$1,000,000
Restrictionson
advertising
and
communicatio
ns
Silent General
solicitation
permitted
(seeNote4
below)
General
solicitation
directedto
district
residents
afterfilingof
noticewith
commission
General
solicitation
permitted
afterfilingof
notice
General
solicitation
permittedbut
Issuer(and
anyInternet
Offering
Portalused)
musttake
commercially
reasonable
measuresto
limitaccessto
offer
information
toresidents
ofthestate
(NOTE:Allows
forgeneral
announce
mentsubject
tolimitations)
General
solicitation
permitted
afterfilingof
notice
General
solicitation
permitted
afterfilingof
notice
Silent General
solicitation
permitted
afterfiling
withstate
General
solicitation
permitted
afterfiling
withstate;
providedall
communicati
onbetween
Issuerand
investors
mustbedone
through
General
solicitation
permitted
General
solicitation
permitted
Ongoing
reporting
requirements
Silent Silent (seeNote4
below)
Annual
(internally
prepared)
reportsto
investorsand
the
commission
covering
business
operations,
financial
condition,
and
compensation
todirectors
andofficers;
maysatisfyby
postingonits
ownwebsite
w/in60days
aftertheend
ofeachfiscal
yearofIssuer
Silent Quarterly
(internally
prepared)
reportsto
investors
covering
business
operations,
financial
condition,
and
compensation
todirectors
andofficers;
maysatisfyby
postingonits
ownwebsite
orthrougha
qualified
Internet
Offering
Portalw/in45
daysafterthe
endofeach
fiscalquarter
ofIssuer
Silent Quarterly
(internally
prepared)
reportsto
investors
covering
business
operations,
financial
condition,
and
compensa
tionto
directorsand
officers;may
satisfyby
postingonits
ownwebsite
orthrougha
qualified
Internet
Offering
Portalw/in45
daysafterthe
endofeach
fiscalquarter
Quarterly
(internally
prepared)
reportsto
investors
covering
business
operations,
financial
condition,
and
compensa
tionto
directorsand
officers;may
satisfyby
postingonits
ownwebsite
orthrougha
qualified
Internet
Offering
Portalw/in45
daysafterthe
endofeach
fiscalquarter
Silent Silent Silent Quarterly
reportsto
investors
covering
business
operations,
financial
condition,
and
compensa
tionto
directorsand
officers;may
satisfyby
postingonits
ownwebsite
orthrougha
qualified
Internet
Offering
Portalw/in45
daysafterthe
endofeach
fiscalquarter
ofIssuer
PreparedasacollaborationbyCrowdcheck(www.crowdcheck.com),AnthonyJ.Zeoli,Esq.(azeoli@ginsbergjacobs.com)ofGinsbergJacobsLLC,andGeorgiaP.Quinn,Esq.(gquinn@seyfarth.com)ofSeyfarthShawLLP.
STATE ALASKA CALIFORNIA CONNECT
ICUT
DISTRICTOF
COLUMBIA
FLORIDA ILLINOIS MISSOURI NORTH
CAROLINA
NEWJERSEY SOUTH
CAROLINA
TEXAS UTAH VIRGINA
ofIssuer
ofIssuer
Disqualificatio
nfrom
exemption
BadActor
disqualifica
tion(Same
Defn.asRule
506(d))
BadActor
disqualifica
tion(Same
Defn.asRule
506(d))
(seeNote4
below)
Issuer
disqualifica
tionasunder
RegulationA
(17CFR
230.262)
BadActor
disqualifica
tion(Same
Defn.asRule
506(d))
BadActor
disqualifica
tion(Same
Defn.asRule
506(d))
BadActor
disqualifica
tion(Same
Defn.asRule
506(d))
BadActor
disqualifica
tion(Same
Defn.asRule
506(d))
BadActor
disqualifica
tion(Same
Defn.asRule
506(d))
BadActor
disqualifica
tion(Same
Defn.asRule
506(d))
BadActor
disqualifica
tion(Same
Defn.asRule
506(d))
BadActor
disqualifica
tion(Same
Defn.asRule
506(d))
BadActor
disqualifica
tion(Same
Defn.asRule
506(d))
Applicable
statesecurities
lawantifraud
liability
Potential
liabilities
include
45.55.925
and
45.55.930of
theAlaska
SecuritiesAct
Potential
liabilities
include
27200,
27201and
27202ofthe
California
SecuritiesAct
(seeNote4
below)
Potential
liabilities
includeTitle
3131
5606.04and
315606.05of
theD.C.
SecuritiesAct
Potential
liabilities
include
517.241and
517.302of
theFlorida
SecuritiesAct
Potential
liabilities
include815
ILCS5/13and
815ILCS
5/13ofthe
Illinois
SecuritiesAct
Potential
liabilities
include
409.5508
and
409.1006of
theMissouri
SecuritiesAct
Potential
liabilities
include
78A56or
78A57ofthe
North
Carolina
SecuritiesAct
Potential
liabilities
include
49:370.1and
49:371of
theNew
Jersey
SecuritiesAct
Potential
liabilities
include35
1508and
351509of
theSouth
Carolina
SecuritiesAct
Potential
liabilities
include29
and33of
theTexas
SecuritiesAct
Potential
liabilities
include61
122and
61122of
theUtah
SecuritiesAct
Potential
liabilities
include
13.1520and
13.1522of
theVirginia
SecuritiesAct
1. TheSection3(a)(11)exemptionfromfederalregistrationisgenerallyknownasthe"intrastateofferingexemption."SECRule147providesasafeharborfromfederalregulationforissuersrelyingontheSection3(a)(11)intrastateoffering
exemption.Toqualifyforthisexemption,thecompanymust:(1)beorganizedinthestatewhereitisofferingthesecurities;(2)carryoutasignificantamountofitsbusinessinthatstate;and(3)makeoffersandsalesonlytoresidentsofthat
state.Forinstance,acorporationorganizedunderthelawsofDelawareanddoesbusinessinGeorgiawouldnotqualifyfortheexemption.Additionally,issuersengagingingeneralsolicitationundertheexemptionsmusttakecarethattheydo
notmakeoffersofsecuritiesoutsidethestate.
2. TheSEChasrecentlyprovidedguidanceoncompliancewithuseoftheinternetforintrastateofferings.SeeSECSecuritiesActComplianceandDisclosureInterpretations("CD&Is")questions141.03,141.04,141.05,
http://www.sec.gov/divisions/corpfin/guidance/securitiesactrulesinterps.htm.Ofnote,anyonlinesolicitation,whetherdonebytheissuerorthirdpartyinvestmentplatform,mustberestrictedtointrastateofferees.
3. Someidentifieddisclosuresmayrepresentbestpracticesuggestionsratherthanstatutorilyrequireddisclosures.
4. BillonlyprovidesforthestudyoflegislationinotherstatesconcerninginvestmentexemptionstoallowCrowdfunding.