RULE 506(c)
KEY FEATURES OF RULE 506(c)
- The issuer can raise an unlimited amount of money;
- Issuers can sell their securities to an unlimited number of accredited investors;
- The issuer must take steps to verify the status of the investor: to ensure that the investor is an accredited investor;
- Non-accredited investors can not participate in a Rule 506(c) offering;
- General solicitation and advertising of the offering is allowed;
- The issuer must file a Form D within 15 days after the first sale of securities in the offering;
- Rule 506(c) 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.
