Rule 506(b)

RULE 506(b)

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KEY FEATURES OF RULE 506(b)

            • Companies can raise up to a maximum $10 million during any 12-month period;
            • In most cases, securities sold under Rule 504 are restricted securities;
            • Both accredited and non-accredited investors can participate;
            • Some companies are not eligible to use Rule 504;
            • Generally speaking, the issuer cannot use general advertising or solicitation when making the offering;
            • The issuer must file a Form D within 15 days after the first sale of securities in the offering;
            • Rule 504 offerings are subject to “bad actor” disqualification provisions; and,
            • Issuers must comply with state security laws (“Blue Sky Laws”) and regulations in the states within which securities are offered and sold.
PPM 1
PPM

Rule 506(b) PPMs For Corporations

Rule 506(b) PPMs For LLCs